Pointers for Small Boards:

  • No necessity for members to obtain the floor before making a motion or speaking;
  • No necessity for motions to be seconded;
  • No limit to the number of times a member can speak to a question and motions to close or limit debate;
  • Informal discussion of a subject is permitted while no motion is pending;
  • The chairman can vote on all questions.

The above relaxed procedures are more conducive to smaller boards and membership. Nevertheless, be sure that the procedures are not too relaxed and that a vote or abstention is recorded for each board member present at a meeting. If a board member does not vote he or she is presumed to have assented to the action taken by the board.

In our role as outsourced in-house counsel for small to mid-sized businesses, Kistemaker Business Law Firm regularly advise shareholders, executives, and senior management on critical business decisions. Our attorneys speak from practical experience—having run private businesses, having served as corporate in-house counsel, and having served on corporate boards of directors. Contact us today for all your legal business needs -386.310.7997

No comments:

Post a Comment