Board meetings are meetings where the Directors of a company meet in order to take important decisions which impact on the future of the company. A company is a legal entity, and the Board of Directors is the apex body which makes decisions on behalf of the company.
To make Board meetings productive, and to ensure that they stay focussed, it is important to have a proper agenda for each meeting. Board meetings cover many different subjects ranging from compliance items, prescribed by law and regulation, to business items, that are presented by the management to the Board of Directors, for decision-making. In these meetings, actions taken/ progress of work since the previous meetings are monitored.
The agenda is drafted by the Company Secretary, with the help of KMPs, such as MD and CEO, CFO, as also the Head of Departments. It is usually approved by the Chair of the meeting, before being sent to the Board members. Every Director has the right to suggest items to be included in the agenda.
There are a few things that should be kept in mind while finalising the agenda for a meeting -
Law requires the agenda to be sent out at least 7 days prior to the Board meeting. Care should be taken that the agenda, along with all the agenda notes, is sent in advance, so that Directors can come prepared for the meeting.
The preparation of a list of agenda items and the accompanying agenda notes in a careful and complete manner is the first step towards the holding of a successful Board meeting.