The reason for board meetings

It is very difficult to adhere to the Companies Act as a director without holding regular board meetings.

The Companies Act stipulates a long list of things that directors need to do: s171- 179 of the Companies Act 2006.  Directors are personally liable for aspects of the Companies Act and holding properly constituted Board Meetings reduces that risk. 

In 2019 a company director received a 12-week jail sentence because his company failed to have adequate HSE procedures.

Health and Safety, data protection, or cyber security, are examples of things that every company must consider.  Do you have a bribery and corruption policy?  Without it, you could find that your sales team are in breach of the Bribery Act.  Probably something the directors would want to be on top of because failure to do so could lead to criminal prosecution of individuals.  

Board meetings are so important and useful –

• Board meetings don’t have to be all about regulations. 
• They are a forum in which the directors evaluate the company’s performance and make well informed decisions.  
• Well run meetings lead to better decision making which in turn computes to better corporate results.
• There is an even bigger reason why board meetings should be your friend as an entrepreneur: Valuation! 
• A well-constructed series of board meetings, with appropriate minutes, demonstrates good governance and will make a massive difference when it comes to raising capital or more prosperous business exit.

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