Jorje
A board of directors utilizes various documents to fulfill its responsibilities. They cover legal requirements as well as internal guidelines and policies. In order to effectively make decisions, directors require access to concise, clear and complete information.
It is vital that every non-profit organisation has the correct documents for the board to ensure its success. A board can get overwhelmed by administrative tasks with no appropriate documents and lose focus on the strategy. To ensure that your board is performing its fiduciary obligations of accountability, it’s crucial to keep these five essential documents in your possession:
Board papers are documents that board members review before and during the meeting. These documents are important because they provide context and background information that helps boards make informed decisions. Board papers should be concise, clear and complete. This is a combination of three C’s:
Financial Statements
Board members require a snapshot of the financial health of the business that is easy to read. This will allow them to know what the company has and how much cash is on hand and what expenses have been voted on by the board. The board must be familiar with the financials of the company in order to ask right questions at meetings and oversee the CEO’s financial accountability.
