A board of directors employs numerous documents to perform its duties. They vary from legal requirements to internal guidelines and policies. In order to effectively make decisions, directors require access to concise, clear and complete information.
The proper board document is essential for any non-profit organization to be successful. A board can get overwhelmed with administrative duties with no appropriate documents and lose focus on strategy. It is essential to keep these five documents in your arsenal to ensure that your board is fulfilling its fiduciary obligation of accountability.
Board papers are the documents that board members read prior to and during board meetings. These documents are vital because they provide background and context that assists boards in making informed decisions. Board documents should be concise, clear and complete. This is an amalgamation of three C’s:
Financial Statements
Board members require a quick overview of the financial health of the business that is easy to read. This will help them comprehend what the company’s assets are and how much cash is available, and the expenses that have been approved by the board. The board should be acquainted with the company’s finances to be able to ask the right questions at meetings and oversee the CEO’s financial accountability.
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