A board of directors utilizes numerous documents to fulfill its duties. They include legal requirements, as well as internal guidelines and policies. In order to effectively make decisions, a board needs access to clear, concise and complete information.
The proper board documents is crucial for any non-profit to be successful. A board can get distracted by administrative tasks without the appropriate materials and lose focus on the strategy. To ensure that your board is performing its fiduciary duty of accountability, it’s vital to keep these five key documents at hand:
Board papers are the documents that board members read prior to and during board meetings. These documents are crucial as they provide the background and context that Online data room allows boards to make informed decisions. To be effective, boards’ documents must be concise, clear and complete. It is a combination of the three C’s of communication:
Financial Statements
Board members require a simple picture of the financial health of the company to know what’s owned, how much cash is available and what expenditures are authorized by the board. The board needs to be familiar with the financials of the company to be able to ask the pertinent questions at meetings, and oversee the CEO’s financial accountability.