Does my company’s board of directors need to have meetings?

Takeaway: No, your board doesn’t have to have meetings; it can approve things by written consent instead. This is what most early stage companies do. Often, after a startup has brought investors onto its board, it will start having more formal board meetings.

The board of directors is one of the most important decision-making bodies in a startup. They are responsible for overseeing the company's operations, making strategic decisions, and ensuring that the company is on track to achieve its goals. Earlier-stage startups typically do not hold formal board meetings while the board is only the founders because the founders are already in constant communication. Once you raise venture capital, your investors may require you to periodically have formal board meetings as a mechanism for them to review company updates and provide directional input.

Board meetings provide a forum for directors to discuss important issues facing the company and to make decisions that will impact the startup's future. During these meetings, directors may review financial reports, discuss upcoming projects, and provide guidance to the company's management team. Board meetings also give directors an opportunity to ask questions, share insights, and provide feedback. Many venture capital investors have expertise in issues that startups commonly face and board meetings are an opportunity for them to counsel the founders on how best to navigate these issues. You should use your investor board member as a resource and thought partner - remember, to a large extent, their success is directly tied to your success.

In addition to the benefits of collaboration and decision-making, holding regular board meetings can also help ensure that the startup is complying with legal and regulatory requirements. For example, if a board member suspects that the company is engaging in illegal activities, they may raise the issue during a board meeting and take steps to address the issue. Similarly, if a company is subject to regulations in its industry, the board may need to review and approve policies or procedures related to compliance.

While it's important for startups to hold board meetings, the frequency and format of these meetings can vary depending on the needs of the company. Some startups may hold monthly board meetings, while others may meet quarterly or on an as-needed basis. Before the pandemic, many startups held in-person meetings but now nearly all board meetings are virtual.

In conclusion, while it's not legally required for a startup's board of directors to hold meetings, doing so is generally considered best practice after you raise money from investors. Board meetings provide a forum for collaboration, decision-making, and oversight, and can help ensure that the company is complying with legal and regulatory requirements. The frequency and format of board meetings can vary depending on the needs of the company, but holding regular meetings that include your investor director is an important part of ensuring the long-term success of a startup.