A company needs to conduct a board meeting quarterly. These board meetings can be held only by the board members. These groups of board member have a part of that particular company’s share. Board members can be of one family or others who purchased that company’s shares.
So every quarter year, holding company invites its board members to attend board meeting. And most importantly, every single board member needs to attend that particular board meeting.
In such business meeting the company performance is presented to other board members in the form of a financial report of their company. Being a part of that, board members has all the right over company’s profit or loss.
And not just to show their financial report of the financial year, the company can even pitch their new venture to other board members to avail their vote.
Structure of Board Members:
A board meeting can be conducted by the board of directors or board members and following are the categories of such members of the board.
1. Chairman: A chairman is the head of the corporation. A chairman has the authority to conduct a board meeting. All rest of the board members should attend all such board meetings conducted by a chairman. A chairman holds the company with other board members. These board members opinions matters to the chairman to make the final decision.
2. Inside Directors: Inside directors are those directors who may be personally related to a chairman that may be management of the company. These inside directors may work as a management system of the company.
They help to understand the budget and financial reports of the company. They create reports for all the final statements of proposal for the company. Their opinion also matters to finalize a decision.
3. Outside Directors: Outside directors are those directors, who were never part of the management system of the company. They also work for the chairman, but never follow his / her decision. In simple words, an outside directors are those who purchased or acquired a part of the shareholding company and acts as equity shareholder of the company. To finalize a decision a chairman needs to win over outside directors votes as well.
Best ways to take over a Board Meeting:
The Board meetings are held in every quarter year and to make it successful, there are certain ways to follow it.
1. Addressing the chairman and board members effectively: To start a board meeting effectively, a chairman and the board members need to be addressed honorably. Most importantly the chairman needs to be addressed first with all the respect, as he is the authority of that board meeting. A scheduled standardized board meeting should start with honoring the chairman and then the rest of the board members.
2. Announcing agenda for meeting: After the formal introduction of the chairman and the board members, the presenter needs to announce the formal meeting agenda of that particular board meeting.
The presenter needs to brief all the elements to be discussed in this board meeting clear. Highlighting the main elements of the board meeting should be cleared after the adjournment.
3. Understanding the need of the board meeting: The holding company is required to conduct a board meeting to convince their board members regarding the recent change occurred within the company.
To inform them or to gain their vote, the company conducts a board meeting to ensure their acceptance. Only a member of board can call for a board meeting. And all board members should attend such board meeting without fail.
4. Be confident about your approach: In a board meeting a person or a board member pitches his/her business deal for the future betterment of the company. And to approach or to gain board members’ confidence, he/she should be confident enough to approach them with very creative manner that they won’t even think twice about casting his/her vote towards your plan.
5. Set targets clear: A board member approaches a board meeting with certain plan. That certain plan should be clear within its profitability. If the approach is regarded launching a certain product then the approach should be covering all the aspects of new launches and possibilities of its strength, weakness, opportunities threat.
6. Updating all the company activities to the board members: Update all the board members about the recent development of the company and also future references. It should be done regularly instead of updating them at the time of board meetings. The Holding company can create a common information tool to share all the activities to its board members.
7. Understanding, the board members’ expectation: All the board member expects certain profit or development of the company. Some time those expectations never meet during the board meetings. If one have to gain a board member vote then he/she have to understand the needs of all the board members. By studying all about the board members before conducting a board meetings, can create win-win situation.
8. Have a creative approach: Normally, most of the board meetings be less boring and uninteresting. And this kind of atmosphere for the board meeting will never favor you. So get all the board members attention, it’s necessary to bring in some fun into action. Effective board meetings can be a social get – together, where all the board members are invited. Or by conducting a professional party to discuss future development.
9. Create healthy conversation: During the time of board meetings create a healthy conversing atmosphere. Where all the board should be participating or being attentive during the board meetings.
By creating healthy conversation during the board meeting can help you to understand the board members point of view. This helps you adjust or approach accordingly.
10. Choose your words carefully: A person holding a meeting needs to be very patient and responsible. At the board meeting some time some things never will favor you, but to make it favorable to you always be polite and gentle.
To address the board meeting, an addresser needs to understand how to handle them responsibly. He should address all the board members with utmost respect and honor.
11. Use technology as a tool: Recently there are certain advancement in technology that one can grab attention of the public very easily. Instead of using same old boring techniques at the board meetings, one can use graphical digital presentation of the development and profits.
By showing graphs and tabulations, one can grab attention of all members. These can let all the board members to be attentive and interactive. They will also be aware of the newest technology for their good which can favor you in a better way.
12. Have a healthy break in between of the meetings: Other than business one can always feel better to talk about personal interests. Doing business is strictly professional, but in that professionalism creating a professional relationship will never harm anyone. By taking a tea break or little chat will reduce heat or tension in the middle of the board meetings. And one can always super charge such board meetings.
13. Schedule a change of venue: Every time holding a board meeting in one particular place will exhaust all the board members. To give them a change it is always a plus to schedule a meeting other than usual place.
It will favor a company and also the board member as well. Bring professionalism to an elegant level can always let you gain your board members’ trust. In this way board members will actively participate in company’s decision making.
14. Present an accurate report: After all the trust gaining exercise, board member needs to be accurate with his figures and there shouldn’t be any tampering with the actual figures reported.
Presenting a proposal is big and to gain a positive vote for such a proposal needs intelligence. Board members are hard to please and if one should be pleased then it will be with their profit figures.
15. Never pause while answering: While presenting a proposal, a board member can be confident, but while answering their questions if he/she loses confidence then it will affect their business very badly. After the presentation there always be certain doubts about certain things, at that time the person should be clear with their question and be confident while answering them.
16. Share motivational speech: Sharing a motivational speech within the board members will create a positive environment during the board meetings. These motivational speeches will let other board members to stay positive about the new proposal or new launch, even if they are a little confused, this will help them to move on and stick to their decision in a better manner.
17. Schedule a standardized structure: Standardized structure of a board meeting will help you create a scheduled and less time consuming structure over board members. It also can help you to be organized.
All board members do not prefer to waste their time because time is money for every business men . By a scheduled standardized structure it helps you to maintain a professionalism.
18. SWOT analysis: For every proposing proposal, a presenter needs to understand its strength, weakness, opportunities and threats. These main elements make you to understand the current status of the proposal. And this analysis helps all the board members to be clear with their decision so that they can make a profitable decision. All possibilities should be tested before going with it.
19. Open for all queries: At the end of every meeting or session, a presenter of such meeting will answer all the questions regarding the board presentation. This will help board members understand the level trust with that company. While answering the question a board member needs to know the concern of that particular member and answer according to that. It creates a healthy, positive end to the session.
20. Closing statement: Closing statement needs to be very firm and confident. As a host of that particular board meeting, a presenter needs to make sure that at the end of that particular board meeting all members should respond positively to their proposal.
And if there is any confusion between board members even after answering their queries then with a strong closing statement he / she can turn a No into a positive Yes.
21. Counting votes: After the end of a board meeting, all board members should show their support to that particular proposal through casting their votes by raising their hand. And a proposal needs to understand the impact of his / her proposal to the board members through this act. It helps to make change with future proposals. Officially an acceptance or a rejection made through votes.
22. Addressing an appreciation: At the end of standardized structure of a board meeting there will be an end note for such effective meetings. This end note for standardized board meeting would be an appreciation speech. This concludes the board meeting by appreciating all the presence of board members and also their opinion about the board meeting. And only a chairman can adjourn the board meeting and allow all to leave.
To conclude, I would suggest that if one have to super charge their board meeting and turn all board members to turn their votes positively, then they have to follow all above steps mentioned. In this way a board meeting can be ended with successful note. And by these all steps board members and the chairman will finally will favor your proposal to be processed further.