A board of directors makes use of numerous documents to perform its responsibilities. They cover legal requirements as well as internal guidelines and policies. To make the best decisions, a board must have access to comprehensive, accurate and concise information.
It is essential that any non-profit organization has proper documents for its board to ensure success. A board can get distracted by administrative tasks without the appropriate materials and lose focus on strategy. It’s vital to have these five documents available Our site about the benefits of a deal room for investing companies to ensure that your board is fulfilling its fiduciary obligation of accountability.
Board papers are the documentation that board members study prior to and during a board meeting. They are crucial because they provide background and context that helps boards make informed decisions. Board documents should be concise, clear and complete. This is the result of three C’s:
Financial Statements
Board members need an easy-to-read overview of the financial health of the company to be aware of what is owned, how much cash is on hand and what expenses are approved by the board. The board must be familiar with the company’s financials in order to ask the right questions at meetings and monitor the CEO’s financial accountability.