A board of directors employs a variety of documents to fulfill its responsibilities. These range from legal requirements to internal guidelines and policies. To make the best decisions, boards must swrc2.info have access to complete and precise information.
The proper board documents is essential for any non-profit organization to be successful. A board can get overwhelmed with administrative duties without the proper materials and lose focus on strategy. It is essential to keep these five documents on hand to ensure that your board is meeting its fiduciary responsibility of accountability.
Board papers are documents that board members read prior to and during the board meeting. They are crucial because they provide background and context which helps boards make informed decisions. Board papers should be concise, clear and comprehensive. This is the result of three C’s:
Financial Statements
Board members require a snapshot of the financial health of the company that is simple to comprehend. This will help them understand what the company owns and the amount of cash in the bank and what expenses have been voted on by the board. The board should be acquainted with company finances in order to ask appropriate questions at meetings and oversee the CEO’s financial accountability.