Consent agendas provide an opportunity to transform board meetings from boring speeches into active discussions. Here is more about the purpose of consent agenda creation.
The purpose of an agenda
Productive management in the corporate structure requires an effective and qualified board that will quickly solve the main tasks of the corporation and help strengthen its business image. It is for the implementation of the corporation’s policy and the achievement of its strategic goals that an executive body is created, which operates permanently and carries out direct management.
The board of directors, as a key element of corporate governance, determines the strategic directions of the financial organization and acts as a kind of guarantor of the balance of interests of management, owners, and other stakeholders. The main goal of the board is to implement a governance system that would ensure an increase in the market value of the company’s shares in the medium and long term. The current structure of the board of directors ensures a balance between five independent directors, one non-executive director, and four executive directors.
A balanced structure of the board of directors is a prerequisite for ensuring the high quality of decisions and management of the company. The ratio of the number of independent, non-executive directors to the total number of the board of directors guarantees equal protection of the interests of all shareholders.
The activities of the boards during meetings are regulated by a number of administrative documents. And one of them is an agenda. The main goal of the agenda creation is to regulate the process for preparing, and holding events, as well as drawing up, storing, and providing minutes of meetings of the board of directors.
It is recommended to determine the form of the meeting of the board of directors taking into account the importance of the agenda items.
What is the consent agenda?
The consent agenda defines which items are to be dealt with in a meeting, discussion, or assembly for the purpose of information, advice, or voting. An agenda gives the structure and orientation of the discussions. It is essential to create it if you want to give participants the opportunity to prepare.
A consent agenda is a set of questions that is voted on, without discussion. The chairman of the works council sets the agenda for the works council meetings. He compiles the individual items on the agenda based on the business situation.
This type of agenda can also help to shorten meetings so that you don’t have long discussions about issues that are easy to approve. It leaves you with more time to do things that can only be accomplished when meeting as a group. The agendas help the meeting stay on track. This allows participants to know if they need to prepare for the meeting and what the expected result is.
As already described above, the consent agenda serves to give the works council members the opportunity to prepare. That is why the agenda cannot easily be changed or added to during the works council meeting. If it does happen, the following strict rules apply:
- All properly invited works council members or substitute members must actually have appeared for the meeting
- Everyone must unanimously agree to the change/addition.
Of course, it is always better not to deliberate and resolve a new item on the agenda headlong, but rather, if necessary, to convene another works council meeting at short notice and use the time in the meantime to prepare.