When board of directors documents are hard to find or confusing directors are less likely at meetings ready to discuss strategy and take action. This is particularly true if the board meeting package arrives late or updates are not distributed to the entire board in real-time this can cause confusion as to what is “the appropriate version” to review.
It’s difficult for boards to oversee and monitor companies if they do not have sufficient information and do not have enough discussion with directors between board meetings. Meetings for board board of directors documents efficiency members with undefined agenda items, lack of background on strategic issues, or too much unrelated discussion can make it difficult for the chair to move the meeting along.
The role of boards is to be stewards of their businesses, and often have a significant impact on the performance of businesses. Boards that are not effective can be harmful. A dysfunctional board may be characterized by a tense and unruly membership who try to simplify complicated questions, or debates that diverge from the subject. And, even more troubling than that, it might have members who are silent or MIA.
Boards are complex organizations and their success depends on the participation from a wide range of individuals who bring different viewpoints as well as experiences and skills to the table. Many boards have formed committees for audit, compensation, and governance, as well as financial services-regulated risks. Some even have ad hoc committees to assist them in tackling the more urgent, shorter-term issues.
