There’s a widely held belief that only large companies really need board meetings.
This is a little like driving a small car without watching the fuel gauge, servicing it or watching tyre pressure, just because it’s small so easier to push. When something goes wrong, you’re still in trouble…
And under the Companies Act, if your business gets into trouble and you cannot show you’ve been on top of things and performing your director duties correctly, you can be held personally liable for any and all losses and damages suffered.
Board meetings are not only a great way to stand back from your day-to-day operational involvement in the business and look at the company strategically, to identify risks and opportunities, calibrate executive performance and the like, but they serve to enable you to document your actions so you can prove compliance, too.
The Companies Act does not specify a minimum number of board meetings for an SME, but at least one a quarter is desirable. And in difficult times, or a fast-moving environment, even small companies should consider a monthly board meeting, to ensure they are really looking at the business strategically.
Well planned, regular board meetings are not time wasted, but time well-spent in securing your future.
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