The activities of a company are implemented in a variety of organizational forms. Some of them are used at the level of small structural departments, others are more typical for managerial structures. The most common forms of workflow organization at the management level are board meetings vs. general meetings. However, not everyone understands the differences between these types of meetings. We suggest expanding your knowledge of board meetings and general meetings and identifying their most characteristic features.
The main differences between the two types of meetings
At first glance, it may seem that meetings of the governing structures are not that important to the work of the company. They require too much time and effort to organize and conduct, which could be better used for more meaningful tasks. However, this view is a bit mistaken. The various meetings and gatherings are a form of democratic management that is practiced in many companies around the world. In addition, collective decisions can be more variable for the development of the company.
Nor should the importance of board meetings be overstated compared to general meetings. They have a similar organizational structure, but their goals are different – in the first case, it is a search for optimal solutions for the company’s development, in the second – evaluation of the effectiveness of decisions made by the board, which are reflected in the results of operations and profits.
For companies with corporate governance, the presence of general meetings and meetings of the directors is an integral part of the overall work process. Therefore, it is worth looking for more effective methods to organize and conduct them.
What are the board and general meetings: main differences
Meetings are one of the most common and effective forms of corporate governance. They are necessary in order to more effectively track a company’s performance, make realistic assessments of its performance and make decisions that will maximize its benefit. However, there are differences between different types of meetings as a form of workflow organization, particularly between board meetings and general meetings.
It is possible to define such features for board meetings:
- They are held with the regularity necessary for the normal operation of the company, but not less than once a month;
- Members of the board of directors at the meetings assess not the overall performance of the company, but the specific performance of each structural unit;
- The main participants of the board meetings are the executive managers, who are directly involved in the work of the company;
- The result of the board meeting is specific guidelines that all employees of the company need to adhere to.
General meetings, despite some similar organizational points, have a rad of distinctive characteristics, among them:
- Regularity of meetings – general meetings are held only once a year;
- The nature of the participants – general meetings are usually attended by the shareholders of the company, not just the executive management;
- The nature of the matters discussed – general meetings do not address organizational matters in the work of the company but use general information about the results and achievements of the company.
At the same time, the importance of general meetings in the life of the company should not be diminished. They are necessary not only to study the overall results but also to draw up strategies for the further development of the company.