When documents for the board are difficult to locate or confusing to understand, directors are less prepared to take part in meetings and discuss strategy. This is particularly true if the meeting packet for the board arrives late or when updates are not communicated to board in real-time, leading to confusion around what is “the right version” to look over.
It’s also difficult for boards to oversee and monitor the company’s operations if they don’t have complete information and don’t have enough director discussion between board meetings. Meetings for board members with unclear agenda items, a lack of background on strategic issues, or too much irrelevant discussion can make it difficult for the chair to keep the meeting moving forward.
Boards play a vital role to play as stewards of their businesses, and often have a significant influence on the performance of businesses. Ineffective boards can be toxic. A dysfunctional board might be characterized as having unruly members who make simple issues, or have discussions that diverge from the subject. Or, worse the board could have members who remain either silent or MIA.
Boards are complex and a board’s success requires the involvement from a diverse group of individuals who bring different viewpoints as well as experiences and skills to the table. Many boards have created committees for audit, compensation, and www.onlinebusinessdataroom.org/structuring-board-of-directors-documents-for-operational-efficiency governance and financial risks regulated by the services. Some even have ad hoc committees to help them address the more urgent, shorter-term issues.