Five Types of Board Documents

Our site about the benefits of a deal room for investing companies

A board of directors depends on various types of documents to perform its responsibilities, ranging from legal requirements to internal guidelines and policies. In order to make sound decisions, a board must have access to comprehensive detailed, accurate and clear information.

It is vital that every non-profit organization has the right board documents to ensure success. Without the proper materials, a board can be caught up in administrative work and lose focus on strategic growth. It’s essential to have these five documents in your arsenal in order to ensure that your board is meeting its fiduciary responsibilities of accountability.

Board papers are documents that board members read prior to and during the board meeting. These documents are essential because they provide the background and context that allow boards to make informed decisions. To be effective, board documents should be clear, concise and complete. They should be a combination of the three C’s of communication:

Financial Statements

Board members need a quick and easy picture of the financial health of the company to determine what’s owned, how much money is in the bank and what expenses are authorized by the board. The board should be acquainted with the company’s finances so that they can ask the right questions at meetings and supervise the CEO’s financial accountability.