If documents for directors are hard to find or confusing, directors www.onlinebusinessdataroom.org/structuring-board-of-directors-documents-for-operational-efficiency are less likely to show up at meetings prepared to discuss strategy and take actions. This is particularly true if the meeting packet for the board arrives late or if changes are not communicated to board members in real time and causing confusion over what is “the correct version” to read.
It’s also difficult for boards to monitor and supervise a company if they lack sufficient information and do not have enough director discussions between board meetings. Board meetings with no clearly defined agenda items, that may not provide enough background on the strategic issues, or that are too long, with no pertinent discussion, make it difficult for the board chair to steer the board forward.
Boards play an essential role as stewards for their businesses, and have a major impact on the performance of the business. Boards that are not effective can be harmful. A dysfunctional board may be characterized by members who are unruly, who simplify complex questions, or debates diverge from the topic. And, even more troubling is it could have members who are either silent or MIA.
Boards are complex institutions, and their success depends on the involvement of diverse individuals with different perspectives experience, knowledge, and skill sets to the table. Many boards have committees for audit, compensation, and governance as well as financial services-regulated risks. Many have ad hoc committees to help them address the more urgent, shorter-term issues.