A board of directors makes use of numerous documents to fulfill its responsibilities. These range from legal requirements to internal guidelines and policies. To make the best decisions, boards should have access to all accurate, precise and concise information.
The proper board document is crucial for any non-profit organization to be successful. A board can become overwhelmed by administrative tasks without the proper materials and lose focus on the strategy. It’s crucial to have these five documents on hand to ensure that your board is fulfilling its fiduciary duty of accountability.
Board papers are the material that board members read prior to and during the board meeting. These documents are crucial as they provide the background and context that allow boards to make informed decisions. To be effective, board papers must be concise, clear and complete. They should be a combination of the three C’s of communication:
Financial Statements
Board members need a picture of the financial health of the company that is simple to comprehend. This will allow them to determine what the company’s assets are and the amount of cash available, and the amount of expenses read the article about the software your industry requires to do international business that have been approved by the board. The board must be knowledgeable with company finances to be able to ask the appropriate questions at meetings and monitor the CEO’s financial accountability.