Five Types of Board Documents

A board of directors depends on several types of documents to virtual data room perform its responsibilities, ranging from legal requirements to internal guidelines and policies. To make effective decisions, boards should have access to all detailed, accurate and clear information.

It is crucial that any non-profit organization has proper document for its board to ensure that it is successful. A board can get overwhelmed with administrative duties without the right materials and lose focus on the strategy. It’s vital to have these five documents available in order to ensure that your board is fulfilling its fiduciary responsibilities of accountability.

Board papers are the material that board members read prior to and during a board meeting. They are crucial because they provide background and context that aids boards in making informed decisions. Board documents must be short, concise and clear. This is an amalgamation of three C’s:

Financial Statements

Board members need a picture of the financial health of the business that is simple to comprehend. This will help them comprehend what the company’s assets are and the amount of cash in the bank and what expenses have been voted on by the board. The board must be familiar with the company’s financials to be able to ask the right questions at meetings and supervise the CEO’s financial accountability.