Ask James Phipson: Board Meetings: What They Are and How to Run Them
Understanding the Importance of Board Meetings
James Phipson, Founder of Dragon Argent and a Non Executive Director (NED) for SMEs in London, sheds light on the crucial role of board meetings in a company's success. This video delves into what board meetings are, who should attend, and how to conduct effective meetings.
What is a Board Meeting?
A board meeting is a formal gathering of a company's directors convened to discuss and make high-level strategic decisions. These meetings are pivotal for aligning the leadership team around the company's performance, future goals, financial health, and investment opportunities. Unlike shareholder meetings, board meetings are exclusively for directors.
Who Should Attend Board Meetings?
The core components of a typical board include the chairman, company secretary, and directors. It's essential to differentiate between executive and non-executive directors. While both hold equal legal status, their roles differ significantly. Executive directors are full-time employees involved in the company's operations, while non-executive directors bring external expertise and challenge internal thinking.
The Benefits of Effective Board Meetings
Phipson emphasises the importance of a board as a safe space for challenge, idea generation, and problem-solving. It should be a confidential environment where directors can openly discuss issues and make informed decisions. A well-run board meeting is crucial for driving company growth and success.
Key Elements of a Successful Board Meeting
A clear agenda is fundamental for productive board meetings. Providing directors with sufficient time to prepare in advance ensures focused discussions and informed decision-making. The meeting should have a clear objective, and participants should be encouraged to share diverse perspectives.
Diversity of thought, rather than mere representation, is essential for a high-performing board. A board composed of individuals who can challenge each other's ideas fosters innovation and better decision-making.
Structure of a Typical Board Meeting Agenda
A standard board meeting agenda typically includes:
Call to order
Welcoming remarks
Roll call
Agenda review
Approval of minutes
Officer reports
Financial reports
Committee reports
Old business
New business
Action items
Announcements
Adjournment
By following these guidelines and fostering a culture of open dialogue and collaboration, companies can maximize the value of their board meetings and drive long-term success.
Get Expert Advice
Would you like to discuss specific strategies for improving broad meetings or looking for a non-executive director to support your business, please get in touch with one of our business advisors today.
Founder, Chairman & Head of Advisory
About James Phipson
James specialises in corporate governance, corporate finance and international development. Alongside his role at Dragon Argent he volunteers as a Commander in the City of London Police, where he is responsible for all volunteering, and speaks nationally and internationally on corporate governance and structures.
