As commonplace as it is for board secretaries to take the minutes of a meeting, it may surprise you to learn that boards of directors are not legally required to take minutes at all. Taking minutes at board meetings has become a best practice for a lot of good governance reasons.
Directors and officers insurance (D&O) has an interesting history. In the late 19th century, Lloyd’s of London, a conglomerate of insurance syndicates, developed the current model of D&O liability. But for many years, D&O maintained its popularity primarily within the United States. Around the 1980s, however, the benefits of D&O insurance spread across the ocean and it became popular in all parts of the world.
When a powerful entity like Lloyd’s of London moves cyber risk from #12 on its board agenda to #3 just two years later, as they did in 2013, it should serve as a wake-up call for other boards of directors…
The federal and state governments reward nonprofit organizations for the good work they do by not requiring them to pay taxes. The trade-off is that all of their funds must be allocated for the purpose stated in their charter. Nonprofit…
In recent decades, it’s a whole new world regarding the responsibilities and compensation of corporate board members. New trends are developing as to how various size companies are paying their boards and how they are breaking down the compensation.
Corporate boards and nonprofit boards are different in many ways. Knowing how to get an “in” to the board of your choice might be easier than you think. In either case, learn as much as you can about the existing board, including what talent or expertise they are missing.
In March 2012, BoardEffect published a research report titled “U.S. Laws Governing Nonprofit Boards and Electronic Voting.” The intent was to determine and demystify the legal parameters within which a board could use board portal technology to manage its voting procedures. And it was a huge hit; more than four years later, we continue to see surprisingly widespread usage of the report.
A diverse board of directors brings a range of perspectives and talent that synergizes the board as a whole entity. Many important discussions take place on boards. It’s the differing perspectives of board members that lessen the potential for group think and lead to well-rounded decisions.
Last week a prospective client asked us how BoardEffect users typically measure organizational cost savings from using our product. This is a relatively common question, which isn’t surprising given that virtually all organizations today operate with budget constraints. But this frequent and seemingly simple request implies a range of related questions centered around calculating Return on Investment (ROI). In an effort to address this question completely but concisely, I’ve broken this into a two-part response. The first post articulates a way to think about and justify the general cost of implementing a board portal versus the most common, “free” alternatives. This second post offers a framework for comparing the cost of commercial off-the-shelf software versus the prospect of making a larger investment to build one’s own custom board portal solution.
What happens when a board chair tries to counter low attendance at board meetings with shorter meetings? Even lower attendance, as a well-intended colleague once discovered. Turns out lack of time is not what causes board member absenteeism; in fact, volunteer leaders expect to invest time in the causes they champion — as long as that time seems well-spent.
Effective board and executive leaders know that meeting content must be meaningful in order to ensure the ongoing presence, participation, and engagement of board members. They create strategic agendas, ensure timely access to relevant information, foster generative discussions, and leverage the talent around the board table. They also know promoting attendance at board meetings isn’t just about content – policies play essential roles, too.