A board of directors uses numerous 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 accurate, precise and concise information.
Having the right board documents is essential for any non-profit organisation to be successful. A board can become bogged down in administrative tasks without the right materials and lose focus on strategy. It’s crucial to have these five documents readily available to ensure that your board is meeting its fiduciary duty of accountability.
Board papers are the documents that board members are required to read prior and during board meetings. These documents are crucial as they provide the background and context that allows boards to make informed decisions. To be effective, board papers should be clear, concise and complete. It is a combination of the three C’s of communication:
Financial Statements
Board members require a snapshot of the financial health of the business that is simple to comprehend. This will help them comprehend what the company’s assets are and how much cash is on hand, and the amount of expenses that have been approved by the board. The board must be aware of the company’s finances to ensure they can ask the appropriate questions at meetings and monitor the CEO for financial accountability.