A board of directors relies on a variety of documents to carry out its duties, ranging from legal requirements to internal policies and guidelines. To make effective decisions, directors require access to clear, concise and complete information.
The proper board documents is crucial for any non-profit organization to succeed. A board can get overwhelmed by administrative tasks without the right materials and lose focus on strategy. It’s vital to keep these five documents readily available to ensure that your board is fulfilling its fiduciary responsibility of accountability.
Board papers are the materials that board members read prior to and during board meetings. These documents are important because they provide context and background information that assists boards https://swrc2.info/10-faqs-about-software-as-a-service/ in making informed decisions. Board papers should be concise, clear and complete. This is a combination of three factors:
Financial Statements
Board members need a quick and easy overview 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 knowledgeable about the company’s finances to ensure that they can ask the pertinent questions at meetings and oversee the CEO’s financial accountability.
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