Following on from her series on incorporation, Jennifer Adams offers advice on regulations and best practices that apply to holding company board meetings.
In his article on management reporting, Are you a player or a spectator? David Carter wrote that ’board meetings are simply an exercise in back seat driving. By the time they get to the boardroom the events under discussion may have happened over a month ago’.
So if past is past, is there a need for board meetings particularly for private limited companies managed by less than, say, three directors? A chat over the coffee machine will suffice - surely? Anyone is business will know that life is not that simple and that a raft of legal, tax and regulatory requirements say otherwise. Some key points to consider follow.
NOTE: The Regulations noted in the text are to be found in The Companies (Model Articles) Regulations 2008. Detailed advice in the full article covers:
- Corporate Governance Guidance and Principles for unlisted companies in the UK (Institute of Directors PDF), specifically page 25, ‘A schedule of matters potentially reserved for the board’.
- Guidance on Board Effectiveness (Financial Reporting Council PDF, March 2011)
Jennifer Adams FCIS TEP ATT (Fellow) is Associate Editor at AccountingWEB. A professional business author specialising in corporate governance and taxation, she has written for many of the leading specialist providers of legal, tax and regulatory publications. Jennifer runs her own accounting and consultancy business with offices based in Surrey and Dorset.