www.onlinebusinessdataroom.org/structuring-board-of-directors-documents-for-operational-efficiency
When documents for the board are difficult to locate or are difficult to understand, directors are less prepared to attend meetings and discuss strategy. This is especially true when the meeting packet for the board arrives late or when updates are not communicated to board members in real time this can cause confusion as to what is “the correct version” to review.
It’s also difficult for boards to monitor and supervise companies if they do not have complete information and don’t have enough discussion with directors between board meetings. Board meetings that don’t have specific agenda items, which might not provide sufficient background on topics of strategic importance or are too long, with no pertinent discussion, make it difficult for the chair of the board to lead the board.
Boards play an essential role as stewards for their companies and have a significant impact on the performance of the business. However, boards that aren’t functioning properly can be toxic. A dysfunctional board may be characterized as having unruly members who try to simplify complicated issues, or have discussions that veer away from the topic. Or, worse, it could have members who remain silent or MIA.
Boards are complex and the success of a board requires the participation of a variety of individuals who bring different perspectives, experiences, and skillsets to the table. This is why a number of boards have formed audit and compensation committees, nominating and governance committees as well as financial services-regulated risk committees as well as their board committees. Some boards have ad-hoc committees to help them deal with urgent, immediate issues.