Benefits of meeting minutes
With meetings taking over so many people working days, it’s often perceived that “Britain is in the midst of a meetings epidemic with the average worker now spending 213 hours a year — or 26 working days — stuck in them.”
With so many meetings taking place, it is vital to understand the benefits of meeting minutes, to help businesses make the most of the meetings, and to keep track of discussions, decisions and actions.
Meeting minutes bring clarity to a meeting, helps to provide the focus, and clearly states all the decisions and actions, to avoid unnecessary duplication of discussions, meetings, or confusion.
Benefits of minutes are:
1 – Provides a record for everyone – Minutes provide all stakeholders with a record of what took place during the meeting and the decisions that were agreed upon. They also provide a tangible and easy-to-follow timeline of a project, plan, or decision. This helps ensure that all interested parties who cannot attend each meeting are up-to-date with, actions and decisions.
2 – Minimise business risk – Due to the potential for minutes to be reviewed at any time, they must be a true and accurate reflection of the meeting, even if your business does not fall within a regulated classification or is listed on a stock exchange, it does not negate potential requests from the court or applicable regulatory body or auditor to review and rely on the minutes relating to a specific matter of the business. Industry Insight
3 – Avoids off-topic discussions – With minutes being taken it helps to avoid attendees going off-topic and wasting the time of others. It ensures a concise and accurate record is created and removes off-topic points or decisions being recorded and wasting time.
4 – States ownership and responsibility of decisions – Minutes are often the only evidence on how a decision was reached and by whom. If a vote on a particular course of action occurs, who voted and will offer legal protection in the case of a lawsuit.
5 – Provides a clear record of decisions – They provide an important record of evidence of the approach to the decision-making and a record of the decision. Minutes are completely impartial and unbiased. They provide a record of any disputes, conflicts of interest, and key business plans.
6 – Improves communication – Meeting minutes provide important building blocks for an effective communication approach. They are even more important during the current era of remote working and virtual workplaces. Minutes state decisions taken and key messages agreed upon. There is a written account of outcomes. The meeting is documented, alongside stating time frames and deliverables.
7 – Key decisions can’t be forgotten: Memories are short, and it is normal that after time passes between one meeting and the next, information and agreements can be forgotten or confused. A shareholder or board member might not remember what was agreed upon or have a change of heart weeks down the line. In some instances this may not be significant, however, there can be bigger consequences, for example, the Directors agreed to take out a £500k loan but some believe only £300k was agreed.
8 – Legal Protection and statutory requirements – Minutes are a requirement under UK law and they offer legal protection in the event of a legal case or dispute. Minutes are incredibly useful if a lawsuit is filed or an audit is required. In Companies Act 2006, chapter 9, clauses 248 & 249 it states the requirements of directors’ meetings and other general meetings. Reviewing minutes is also a standard practice when formal audits of the company take place. Current Legislation
9 – Inspire confidence in the leadership of the company – The minutes provide an accurate and unbiased record of decisions made at Board level meetings, which helps to provide an understanding of the Directors decision-making process and the plans for the business, which helps to build confidence and trust in the senior leadership team.
10 – Ability to assess business performance – Having a database of old minutes allows for companies to go back and examine actions taken in the past. This avoids any repeat mistakes and works as an example of how to make good decisions in the future.
11 – Supports future growth for the company –Minutes act as a record of the value and operational activity of a company which can attract interest and investment in your company. Minutes record the big-ticket items like financial performance and strategic initiatives for future return on investment. Shareholders, sponsors, and prospective investors typically reference public minutes. They use the minutes from your meetings as an indication of whether you’re using the funds responsibly, to understand the decision-making process, and enable them to have a peek into the way a board of directors manages the company.
If you would like to find out more about how Oasis Minute Taking Ltd, can support your meetings, then please get in touch.