Effective Board Meetings

2. Members of the Board

Selecting the right mix of people creates an effective board.

Each board director's role should be agreed in the first place.

2.1 The choice of chairperson is crucial. While the managing director runs the company, it is the chairperson who runs the board. All boards need strong leadership.

Appoint a chairperson who can:

• Create a good team.
• Command respect from fellow board members, shareholders and employees.
• Understand the business.
• Listen to all opinions and speak honestly.

2.2 Experienced non-executive directors can have a major positive impact (see 3).

2.3 A team with complementary skills contributes to sound decision-making.

• For example, if you plan to expand, find someone who understands the financial implications.Similarly, blend optimism with pessimism, and experience with youth.

2.4 Board members should be selected on merit. They need to be able to:

• Think strategically, with a long-term view and a level-headed, realistic approach.
• Work well with the rest of the board.
• Contribute to discussions outside their main area of expertise.
• Put the company's best interests ahead of their personal best interests.

2.5 To be effective, the board should agree on the objectives and scope of the board meetings.

• Ask each board member to write down his or her views.Opinions will vary considerably, but you can then come to a workable consensus. This is the first step in getting the board to work as a team.