This Week in Startups How to run an efficient board meeting with Becki DeGraw | Wilson Sonsini Startup Legal Basics
Mar 12, 2021
Becki DeGraw, an expert in startup and corporate law, shares invaluable insights on running effective board meetings for early-stage companies. She emphasizes the critical nature of these meetings in shaping a startup's direction and discusses the balance between founder control and investor input. DeGraw also highlights the distinctions between observer and voting board seats and the evolving dynamics as companies grow. Additionally, she offers practical advice on recording board meeting minutes concisely while ensuring legal compliance and confidentiality.
AI Snips
Chapters
Transcript
Episode notes
Board Meeting Purpose
- The primary purpose of board meetings, especially in early-stage private companies, is good corporate governance and strategic guidance.
- They provide a platform to discuss performance, challenges, and potential solutions, leveraging the expertise of board members.
Board Meeting Frequency
- While not legally mandatory, regular board meetings are crucial, especially when fundraising or nearing cash out dates.
- Formal meetings are necessary for significant decisions like financing or M&A, while written consent suffices for routine matters.
Board Composition
- In early-stage startups, founders should retain board control.
- An odd number of board seats is recommended to avoid deadlocks, with a balance between common and preferred stock representation.