Meeting approvals are instances during board meetings when members agree to a material action taking place. A meeting approval can relate to an action item, a policy change or any other matter that requires signing off by the members of the board before its implementation.
A formal board meeting approval takes place during the meeting, especially when the particular item requires deliberation before voting on it.
When is a meeting approval required?
Typically a meeting approval is required in the following circumstances:
- Changing the company byelaws or policies
- Conducting business transactions
- Adopting the annual company budget
- Changing or accepting the meeting agenda
- Changing or accepting previous meeting minutes
- Designating action items
- Removing a member of the board or selecting a new candidate
- Changing the company name
What factors should be considered during approvals?
A meeting approval is performed on specific items on the meeting agenda. Here are the factors to consider while conducting approvals:
- If it concerns old business that has already been discussed by the board members, only a formal agreement is needed without further debate.
- If it is regarding new business, the chairperson asks for the item to be moved to the discussion section of the board meeting before holding a vote of approval.
- If it is a routine matter, approval is indicated by unanimous written consent.
All items on the meeting agenda should be voted on and approved, delayed or tabled by the end of the meeting.
What is the process of a meeting approval?
A request for approval on a certain matter is added to the meeting agenda. The board members go through the supporting documents in the agenda to deliberate. The matter is then brought up during the meeting by the chairperson of the board who asks for a formal vote.
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