Now you are asking yourself how many parts does a board portal have?
In fact there are many facets to a board portal but all that most people seem to think it does is hold documents for boards to review and have schedule board meetings. In general this is a great first step but a board portal can be much more.
Think of board portal as a Visualization of your entire minute book, stakeholders and corporate activities associated with them.
Using a board portal can help you visualize your companies capital structure if you are either a private or listed company you have a capital structure to your company. This information is often resting inside your minute book in a series of documents, which is only accessible to the person holding the minute book. What is a board of director to do?
In the past executives accumulated and managed information on excel but soon found this tool inadequate for tracking and sharing.
Whether your company is a start up or 100 years old, managing your capital structure and minute book is important for a number of reasons:
- Raising Capital
- Securities Commission Reporting
- Bank Loan
- Board recruitment
- Expiration of Options/Warrants
Officers (CEO, CFO) and Board Directors need accurate information at all times. Directors need to have assurances that the capital structure of the company adheres to the securities laws of the state or province in which it is registered.
When raising capital, the most powerful statement you can make to a potential investors is the accuracy of your information. To show the information on your capital structure,
When you begin discussions with a potential director they need to know what they are stepping into. It is important to know the shareholder make up, how the company capitalized to date, what is the capital structure, and reviewing the minute book to ensure it is up to date.
Managing your corporate information is important when practicing good governance and staying compliant.