Tag: board of directors

What Are Circular Motions?

circular motion agreement

When the board of directors of an organization signs a document with wording implicating that they are in favor of the proposed resolution, it’s called a circular motion. Companies with established procedures will utilize circular motions instead of passing a resolution at a convened board meeting. Circular motions are appropriate for routine resolutions that rouse…

Types of Board Committees

a board committee during a board meeting

The work of a board of directors is accomplished through an array of smaller groups within its sphere.  Boards commonly leverage standing, ad hoc, advisory, steering, and executive committees to ensure optimal efficiency. Every board of directors needs to be diligent about assessing their committee structure. For instance, in a leaner organization, limiting the number…

Relationship Between Independent Auditors and Boards of Directors

independent auditor looking at financials

To stay on the stock exchange, all publicly traded companies in the U.S. require a qualified audit committee. The committees are charged with overseeing financial reporting and disclosure. Given how integral they are are to a company’s board of directors, the word of these auditors carries plenty of weight in any organization.  Also, the laws…

Best Practices for Nonprofit Boards of Directors

Nonprofit volunteers

The phrase ‘no good deed goes unpunished’ can ring true for boards of directors of nonprofit organizations. Financially, they’re already behind the eight-ball. This hurdle makes the challenges faced by board members stifling – primarily if these organizations don’t have the right systems in place. Without profits, a strategy maximizing every resource to its fullest…

Five Tips on How Boards Can Enhance Their Online Security

online security in practice

One study from Duke University shows that 80% of all US companies have been hacked in an attempt to steal or alter data. In 2019, breaches that damage a company’s image and shareholder value are an almost monthly occurrence. It’s not that these organizations ignore cybersecurity. These risks are a top priority of many companies,…

Top 5 Communication Mistakes and How To Avoid Them

Two people communicating outside

Communication is the way of conveying messages effectively to people and receiving feedback from them with the point of establishing mutual understanding. It can be done verbally or non-verbally, and the method used varies depending on the circumstances.  It is safe to say that everyone can communicate, but not everyone can convey. From time to…

The Importance of Diversity on Boards of Directors

A diverse board of directors around a table during a meeting

It’s only natural to stick with what – and who – we know. Psychologically, even if it’s to one’s own detriment, people prefer familiar surroundings. All it takes is assessing one’s own group of friends or peers to confirm this notion.  Unfortunately, the above approach frequently spills into the workplace, at the expense of a…