The shareholders of a company appoint the Board of Directors to take care of their best interest and act as their representative. The main responsibility of the Board of Directors is to govern the company by setting business goals and regulating business methods. The shareholders give the Board of Directors the power to guide the company’s operations and make decisions about the growth and the development of the company.

The content of a Board Meeting is usually confidential, contrary to the shareholders meeting, and the topics discussed are related to the operations of the company. The shareholders make certain decisions and resolutions and the Board of Directors determines the best strategies to implement these decisions. However, the Board cannot pass resolutions which involve the approval and involvement of the shareholders. The Board Meeting takes place more frequently than the shareholders meeting and is often of longer duration. It can be conducted without the physical presence of all the directors. Videoconferencing can be used to validate the presence of the participants.

Here are some subjects generally covered by the Board Meeting:

• Investment plans for future growth
• Plan for market expansion, marketing and technology
• Strategies of the company
• Approval of the agenda and documents of the General Meeting of shareholders
• Consideration of any new business approval
• Consideration of re-organisation of the company
• Consideration of dissolution of the company
• Decisions involving the appointment or termination of the general director or other executives of the company
• Guiding the approval of contracts for purchase, sale, borrowing and lending
• Decisions related to the organizational structure and internal management
• Decisions related to the establishment of subsidiary companies and the opening of branches
• Preparation and submission of annual financial reports to the General Meeting of shareholders
• Approval of Bills against loans and other financial liabilities
• Recommendation about the classes of shares and about the number of shares of each class may be offered

To summarize, the Board of Directors is responsible of taking important decisions as well as reviewing previous ones. All available options are discussed outlining the pros and cons of each. The impact of budget and/or staffing is considered and recommendations on various subjects are put forth.