A board of directors rely on a variety of documents in order to fulfill its responsibilities, from legal requirements to internal guidelines and policies. In order to make sound decisions, boards must have access to comprehensive accurate, precise and concise information.
The proper board document is crucial for any non-profit to be successful. Without the right documents the board could get overwhelmed with administrative duties and lose focus on strategic growth. To ensure that your board is meeting its fiduciary duty of accountability, it’s vital to keep these five important documents on hand:
Board papers are the materials 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. Board documents should be Click This Link swrc2.info short, concise and clear. 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 available, and the expenses that have been approved by the board. The board needs to be familiar with company finances in order to ask the pertinent questions at meetings, and oversee the CEO’s financial accountability.