Must-Know Board Document Best Practices

Board packs are the most crucial resource for guiding board meetings, so it’s natural to want to know the best practices for board documents. They can be the difference between informed, savvy board meetings and overwhelming, directionless discussions.

That’s why we’ve compiled this helpful guide, with important tips on:

• Common challenges of preparing board of directors documents
• Sharing board documents
• The role of board document software in modern board rooms

Common challenges of preparing board of directors documents

Preparing documents for the board of directors is often a complex task. Many organisations struggle with:

• Balancing information and clarity: A common mistake is including too much data in board meeting documents; directors may feel overwhelmed with all the documents needing review. Only include the most necessary, time-sensitive and relevant documents.
• Ensuring accuracy: Above all, board documents must be accurate. This is especially crucial for financial reports, legal issues, decisions made in previous meetings, and any material subject to regulatory requirements. Keeping information accurate across documents and versions can pose a significant challenge.
• Maintaining consistency: Boards often need multiple versions of the same document, such as numerous copies of meeting minutes or years of annual reports. Consistent formatting, terminology, and structure help avoid confusion, but ensuring quality across a high volume of materials is also tricky.
• Security: Board documents contain highly sensitive information, including financial data and personnel decisions. Using secure communication channels and encrypted storage is optimal, but many boards communicate over text and email, potentially compromising data.
• Timeliness: Another mistake is distributing the materials too late, which doesn’t give the board of directors time to review the documents. “The timely receipt of the board papers allows directors to form an opinion prior to a meeting and to ask questions of the CEO and management about what will be discussed or decided at meetings or to discuss issues among themselves,” notes Effective Governance. “The provision of timely and accurate information can be critical to the board’s ability to challenge and scrutinise management appropriately.”

Sharing board documents

How far in advance should you send the documents to board directors?

The World Economic Forum suggests, “Try to ensure board members get their papers at least a week in advance. If there’s a deadline, meet it with several days to spare in case there is feedback before it goes to the board.”

How timely document sharing is often comes down to the tools organisations use, but it is one of the most important of the board documents best practices. Many have shifted to virtual tools amid more widespread digital transformation, but several other options are still used frequently:

1. Email: This is one of the most traditional methods for sharing board documents. While prone to breaches, email remains in use because it is familiar, simple, and easy for less technologically inclined board members. Many organisations also appreciate the ability to send and receive emails almost instantly.
2. File-sharing services: Cloud-based file-sharing services allow users to upload documents to a shared folder, which board members can access through a link. More secure than emails, secretaries can create links only directors can access, mitigating the risk that board data will fall into the wrong  hands. That said, file-sharing security doesn’t always rise to board-level governance.
3. Physical distribution: Printed board books were once the gold standard of board document sharing. Many corporate secretaries still print and mail board packets, which can be easier for some board members to review. While avoiding technology can appeal to less savvy board members, it also introduces significant administrative and supplies costs.
4. Board portals: These secure, cloud-based platforms represent the future of board document sharing. Tools like Diligent Boards centralise all board documents and communication in an encrypted governance platform, promoting streamlined document creation, collaboration and distribution.

The role of board document software in modern board rooms

Board document software transforms how modern boardrooms operate. Traditional paper-based processes have given way to paperless board documents, enhancing the boards’ ability to access secure, accurate and mission-critical information.

The shift to centralised board documents also helps meet legal and compliance requirements, making boardrooms more agile. Boards that adopt board management software embrace the following:

1. Efficiency: Board document software eliminates the need for printed materials. This makes board documents more sustainable and less costly to produce. Moreover, paperless board documents offer directors instant access to up-to-date insights, driving more strategic decision-making.
2. Centralised access to documents: Board document software stores all material, from meeting minutes to financial reports, in a single, secure location. As a result, board members can access documents from any device, anywhere, ensuring they always have accurate information at their fingertips.
3. Enhanced security: Board document software is a significant step up from emails and file sharing. Through encryption and access controls, software safeguards sensitive information. As a result, robust board document software reduces the risk of data breaches, unauthorised access, and loss of client-attorney privilege.
4. Real-time updates and version control: Paper board documents take hours to produce and can easily be outdated when the board meeting updates. Digital records, however, can be updated instantly, with versioning that makes it easier for boards to see only the latest materials. This reduces confusion over which documents to reference.
5. Improved compliance and governance: Laws and regulatory requirements set standards for how the board must store and engage with board documents. Board document software securely archives records and offers easy retrieval for audits. This streamlines board governance and ensures the board is always audit-ready.

Making the digital switch for better board documents

Compiling many documents and shipping them to board directors is the traditional method of distributing paper board packs. Some board packs may be distributed via email. However, what happens if a last-minute document or change is needed? How are boards of directors to maintain version control?

Digital board portals can help streamline communication, maintain version control with the most updated materials, reduce mailing and printing costs, collate information, and ease staff’s time and work burden. While tools like Diligent Boards, part of the Diligent One Platform, can revolutionise document management, not all software solutions are equal.