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All About Board Of Directors Meetings

Aug 17, 2007
The Board of Directors is appointed by the shareholders to take care of their best interest and act as representatives for the shareholders. The Board of Directors is the true governing body of the company. The authority to set business goals and to regulate business methods rests with the board of directors. The shareholders expect the Board of Directors to guide a company's operations and form opinions and strategies for the growth and development of the corporation.

Features of a Board of Directors Meeting
A Board meeting usually runs for a longer duration than the shareholders' meetings and also occurs more frequently than the shareholders' meetings. Board meetings touch more comprehensive topics related to the operations of the company and the ways to strategize the implementation of certain decisions or resolutions passed by shareholders. The Board can also pass resolutions, except those, which involve the approval and involvement of the shareholders. These Board meetings and their content may be confidential contrary to the shareholders' meeting, where the agenda, minutes, and the decisions taken cannot be confidential. Board meetings generally cover the following subjects.

1 The Board plans the strategies of the company.

2 The Board puts forth recommendations about the classes of shares and about the number of shares of each class that may be offered.

3 The Board lays out investment plans for future growth .

4 The Board plans solutions for market expansion, marketing and technology.

5 The Board guides the approval of contracts for purchase, sale, borrowing, lending, and other contracts, and records the total value of assets in the accounting book of the company.

6 The Board resolves decisions related to the appointment or the termination of the general director and other key executives of a company.

7 The Board makes decisions pertaining to the organizational structure and the internal management.

8 The Board plans for the establishment of subsidiary companies and the opening of branches.

9 The Board prepares the annual final financial reports to be submitted to the General Meeting of the shareholders.

10 The Board approves the agenda and documents of the General Meeting of shareholders.

11 The Board may recommend the re-organization or dissolution of the company.

12 The Board gives their approval for various bills against loans & other financial liabilities.

13 The Board considers any new business proposal.

The activities of The Board of Directors can be broadly summarized under the following headings.

1 Descriptions of the issues.

2 Decisions to be taken.

3 Review of previous decisions.

4 Discussion of all the available options, including discussion of the pros and cons of each.

5 The Impact of budget and staffing.

6 Detailed recommendations on various subjects.

The Virtual Meeting
The board of directors meeting can be conducted even without physical presence of all directors. Virtual Meetings can also be conducted, wherein the participants can be logged on to video conferencing, which validates the presence as if it were face to face interaction.
About the Author
David Gass is President of Business Credit Services, Inc. His company publishes afree weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
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