A board meeting is an important event for every company. Such forms of corporate governance provide an opportunity to address various issues from the life of the company in accordance with the principles of openness, transparency and collegiality. This is also facilitated by keeping various documents, among which the minutes take a prominent place. To learn more about its role in the life of the company and how to properly keep minutes of the board of directors, please see our article.
What is the role of board of directors minutes in the life of the company?
Like any other management document, the minutes of board meetings take a significant place in the life of the company. Its materials provide an opportunity to:
- Record the course of the meeting with the smallest details;
- Document decisions on the most important issues for the company;
- To realize the principle of collegial governance with elements of transparency and openness;
- To keep public control over the work of the members of the board of directors.
In general, the importance of minutes of board meetings currently causes some friction among corporate governance experts. Some put it on a par with such important documents as a company’s charter and founding documents. Others, on the contrary, do not see any importance in keeping minutes, giving it the status of a corporate document that has no special impact on the life of the company.
How to keep minutes of a board meeting: expert advice
Modern technology has greatly simplified business life, including – and the maintenance of protocol documentation. Today, it is sufficient to use special software that makes it possible to record the entire course of a business meeting practically second by second. Nevertheless, specialists in organization of corporate management are advised to follow some tips that will help to organize properly the minutes of the meeting of the board of directors:
- Discuss the format of the minutes with management. Each company may have its own record-keeping standards that the minutes must meet. Discuss in advance with management what format for recording or storing meeting minutes would be most appropriate for your company.
- Be prepared to take notes. Some executives may require taking notes during the meeting, so it’s worth discussing in advance whether it’s best to take notes by hand or by typing. You can also use ready-made board meeting minutes templates, which should be developed ahead of time based on your company’s document management standards.
- Check the draft minutes. Before handing the minutes to management to sign, you should check again whether everything has been written down, whether its items correspond to the agenda, whether there are no grammatical errors, and so on.
- Make the minutes official. Make it very simple – the minutes should be submitted to the board secretary or its chairman for signature. To do this, you can use the appropriate tools of virtual platforms for organizing the work of the board of directors – it will be faster and there is no need to make many paper copies.
We adhere to the position that minutes of board meetings are important legal documents. Therefore, you should not ignore the possibilities of digital platforms for organizing board meetings – they can greatly simplify the process of drawing up minutes and their further storage. In addition, they can always be customized to the needs of your company.