Board documents drive the critical decisions board members will make. Too much information risks overloading board members’ precious time and resources, while too little risks withholding information necessary to make the calls that keep a firm on track. So, what documents do you need to include for board meetings? In this blog, we cover the 10 essential types of board documents that form part of a well-rounded board pack.
What is a board document?
A board document is any official paperwork or records the board of directors creates, distributes and uses. From meeting agendas to formal correspondence, board documents inform board members about key issues, track decisions, and maintain transparency within an organisation.
10 types of board documents
The bulk of the board documents are compiled into a board pack . This serves as the primary source of information for board members before and during a board meeting.
Board packs generally include the following key documents:
1. Agenda: The agenda provides an overview of what will be discussed at the board meeting. Agendas should confirm the purpose of the meeting, outline specific topics for discussion and review previous agendas to address any necessary follow-up. Agendas should be sent to board directors at least two weeks before the meeting. Board directors are busy, which helps ensure they have time to review the agenda for the upcoming meeting.
2. Previous board meeting minutes: It’s important to review what was discussed in previous meetings and the current outcome or status. Our article, Effective Meeting Minutes (With Templates), offers insight into making the most of your minutes and maximising meeting productivity.
3. Board resolutions: A board resolution is a formal decision or action the board approves. Boards may need to refer back to them in the future or use them to defend various decisions. Including board resolutions in board documents is crucial to keeping them secure and easy to access.
4. Bylaws: This board document outlines the organisation’s governance structure, rules, and procedures. Having it on hand ensures that all board activities comply with the bylaws.
5. Annual reports: An annual report summarises the organisation’s activities and financial performance over the past year. The board may need to reference annual reports to compare performance with the current year, refresh themselves on previous achievements or set new data-based targets.
6. Documentation: This is the heart of the board pack, the information that guides board discussion and decision-making. Documentation can include:
- Company strategy
- Performance information via financial, human resources and management reports
- Approved budgets
- Committee reports
- Status of action items
- Program highlights for the year to date
- Board roles and responsibilities
- Copy of the organisation’s bylaws
- Human resources updates
For nonprofit boards, any documents pertaining to fundraising activities should be included.
7. CEO (or equivalent) risk/compliance report: This report, created by the CEO, presents risks that may impact an organisation’s strategy, business model or viability. The CEO’s team should research and make the report weeks — possibly months — before a board meeting.
8. Financial reports: Financial reports are among the key board meeting documents. Without the financial report, board members cannot make informed, thoughtful decisions on the company’s direction.
Financial reports typically include:
- A statement of financial position
- A statement of activities
- Cash flow forecast
- Actual results compared to budget
- Operational figures
The CFO and senior management from Finance are responsible for generating this report and should provide the materials in a timely manner for inclusion in the board pack.
9. Committee reports: Corporate board committee reports will likely be more technical, with detailed financial reports, strategic reports, research on a product or service, or analysis. These reports should also be included in the board packs. Nonprofit committee reports focus more on fundraising or community involvement.
10. Major correspondence: In many organisations, an investment relations officer (IRO), who reports to the board, is the main point of contact between shareholders and board directors. The IRO usually handles inquiries from shareholders and investors. This information, which can raise critical issues, should be addressed at board meetings.
“As year-round shareholder activism becomes the new norm in the American boardroom, directors are called upon to prepare for and respond to any possible activist challenges,” according to the National Association of Corporate Directors.
How to level up all types of board documents
Traditionally, distributing paper board packs requires compiling numerous documents and physically sending them to board directors, or occasionally sending them via email. But what if a last-minute update or addition arises? How can directors keep track of the latest versions?
Digital board portals simplify this process, ensuring version control with up-to-date materials, reducing mailing and printing expenses, consolidating information, and lightening the workload for staff. Platforms like Diligent Boards, part of the Diligent One Platform, offer transformative document management, though not all software solutions provide the same benefits.
