Board Report Structure

The board of directors is a management body accountable to the general meeting of shareholders, providing strategic management of the organization and control over the activities of the executive body. Thus, Board report is usual practice in their activity. Here is more about it.

What is the purpose of the Board report?

One of the main tasks of the board of directors is to develop a strategy for the enterprise to increase profitability in the future, as well as to ensure stable economic and financial development. At the same time, the council has no right to interfere in the executive and administrative work of the management.

Minutes are kept at each meeting, which is signed by two persons – the secretary and the chairman. Attached to the document are the opinions of each of those present at the meeting, as well as persons with a dissenting opinion. The information is usually reflected in writing. In the future, the protocols can be used in the formation of the report of the Board of Directors.

By law, all regulations that do not relate to the organization’s trade secrets must be open to all members of the board and shareholders. You can get access to the information at the Board of the enterprise or in another specific place.

Reporting to the meeting of the society is an obligatory task of the board. The frequency of such reports is once a year. For its part, each of the shareholders has the right to demand from a member of the board not only several documents to be presented and a report on the work performed, but also an explanation of the motivation for certain decisions.

The Board of Directors is responsible for the accuracy of the data provided in the reports, as well as for the information transmitted to shareholders during the period of its activity. If there are complaints about certain decisions of the council, a discussion takes place in a special procedure established by the internal order of the enterprise. In turn, the Board of Directors can refute complaints with conclusions and additional comments.

What is the Board report structure?

In general, the Board report can contain the following parameters:

  • report on the work of the enterprise;
  • assessment of the current financial position of the company, as well as forecasts of its development in the future;
  • key parameters of the volume of sales, the price of assets, purchases, deductions to the reserve funds of the profit received for a specific period;
  • work statistics related to the organization’s personnel;
  • deductions for charitable and political purposes.

The preparation of the report of the directors’ council is carried out taking into account the powers and functions of the body. In the course of its activity, the board can make some decisions and reflect them in the report of the Board of Directors. The main ones include the following solutions:

  • on the implementation of capital investments, the amount of which is more than 10% of the company’s turnover;
  • on the registration or suspension of operations, where one of the parties is an enterprise, and the other is a party with a package of securities in hand;
  • on the issue of additional bonds. The board of directors can make a decision personally if such is provided for in the charter of the organization;
  • on the timing and procedure for making payments to holders of securities, as well as delays in payments, the procedure for withdrawing uncovered securities, and so on.
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