Are you new to being a director of a company and are not sure how board meetings work?
Well, this is something that you will become acquainted with quite well as time goes on. But, before your first one, you may have a lot of questions. For example, what exactly is a board meeting and how do they work?
We have created a guide that is going to give you a rundown of what you can expect. This way, you can walk into the room with some confidence.
So, let’s get started.
What is a Board Meeting?
Let’s start off nice and simple. What is a board meeting?
Well, this is when the directors of a company of its board members all get together and discuss what is happening at that company.
In particular, a board meeting is often called to discuss the growth of that business and how it can move forward.
So, in a board meeting, it is likely that the directors and those present will discuss topics such as the company’s performance, as well as any concerns or issues that have to be resolved. Of course, the overarching aim is for the company to progress.
|Note that a board meeting is supposed to be a formal meeting. It is going to involve people that have power at the company and that are capable of making decisions. Often, minutes are going to be made during the meeting so that they become a document afterward. Language is formal and so are the topics discussed.
How Often are Board Meetings?
When it comes to board meetings, every company is going to be different. Namely, some like to have them twice a year.
Alternatively, it can be more often than this. But, they are usually decided on in advance. You can learn more about who can call a board meeting when you click on the link.
This is going to be communicated ahead of time so that the meeting does not come as a surprise to anyone.
There is no official amount of notice that you should give before calling a board meeting. For example, this could be a few days or even a month in advance.
But, it is best to give everybody enough notice so they can prepare and make the most of the meeting. Generally, months in advance is too much and not standard. But, only a few hours or a day before is also unrealistic. You will need to think for yourself what a reasonable time is for giving notice of a board meeting.
Is a Board Meeting Important?
The simple answer to this question is yes, a board meeting is considered an important business date in the diary. Indeed, it is essential to review how the company is doing and how it can grow in the future.
Think about it as an opportunity to review objectives and goals and to see if progress is being made. Plus, it is the chance to create more.
Therefore, board meetings are not something that should be treated lightly. If you are invited to one, it is expected that you attend. You may have to do some work to prepare for one too so that you are up to date with what is going on.
Do Board Meetings Have to be Face-to-Face
It used to be the case that board meetings would always be face-to-face. This was how they were done. But, over the years, technology has changed the way business is conducted.
Indeed, it has changed some board meetings. So, it is possible to have virtual meetings where you are on a video call or voice call.
But, some companies still prefer to meet face-to-face for board meetings. This is a good way to understand nonverbal communication and body language. Plus, it avoids the problem of technology going wrong and being unable to see or hear people on the other end.
Ultimately, it will depend on what everyone is comfortable with. Virtual meetings will still have a place in the future. For example, if there are board members that cannot attend for some reason, they are still going to be able to join this way. All they will need is a computer or a phone to join in the meeting.
|As long as all board members are happy with the way the meeting is going to take place, there are no rules on whether it has to be face-to-face or held virtually.