Five Types of Board Documents
A board of directors uses various documents to carry out its duties. These cover legal requirements as well as internal guidelines and policies. In order to make sound decisions, a board must have access to comprehensive detailed, accurate and clear information.
The proper board documents is crucial for any non-profit organization to succeed. A board can get distracted by administrative tasks without the appropriate materials and lose focus on strategy. To ensure that your board meets its fiduciary obligation of accountability, it’s important to keep these five important documents in your possession:
Board papers are the materials that board members are required to read prior and during board meetings. These documents are essential because they provide the context and background that enables boards to make informed decisions. To be effective, board papers must be concise, clear and complete – a blend of the three C’s of communication:
Financial Statements
Board members need an easy-to-read visual representation of the company’s financial health to understand what is owned, how much cash is available and what expenditures are authorized by the board. The board should be informed about the company’s financials so that they can ask the right questions during meetings and oversee the CEO’s financial reporting.
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