A board of directors rely on various types of documents in order to fulfill its responsibilities, from legal requirements to internal policies and guidelines. To make informed decisions, directors must have access to complete and precise information.

The proper board document is essential for any non-profit organisation to be successful. A board can get distracted by administrative tasks without the appropriate materials and lose focus on strategy. It is essential to have these five documents on hand in order to ensure that your board is meeting its fiduciary obligation of accountability.

Board papers are the documents that board members are required to read prior and during board meetings. These documents are important because they provide context and background information that assists boards in making informed decisions. To be effective, boards‘ documents should be clear, concise and complete – a combination of the three C’s of communication:

Financial Statements

Board members require a simple overview of the company’s financial health to understand what is owned, how much money is available and what expenses are authorized by the board. The board must be familiar with the company’s finances, so that they https://swrc2.info/10-faqs-about-software-as-a-service/ can ask the appropriate questions during meetings and monitor the CEO’s financial reporting.