If there is one thing the pandemic has taught us it’s that many businesses can be easily carried out from the comfort of your home. In some cases remote work has actually increased productivity and lowered costs for businesses. When it comes to working and making decisions at the lower or middle level then you might think that it’s an easy task however what happens when the decisions have to be taken at the highest level. These decisions are usually very important and the company’s future and survival depend on it. In addition to that, there is a lot of paperwork involved as well.
So that begs the question, can board decisions be made remotely during COVID-19 Pandemic?
What Do The Articles Of Association Say?
Well the answer to the above questions isn’t as simple as you may think. Board meetings are serious. They aren’t like any other company meeting. Board meetings are governed by the articles of association. So in order to allow the board to have remote meetings during the pandemic, there has to be a meeting of the board members in person. In this meeting the board can amend the articles of association to allow for the board members to have remote meetings in such dangerous times.
The board should also set some rules on how the remote meeting will take place. How will everyone be informed, who will be the host and other similar decisions have to be made in this meeting. A complete set of rules has to be set in this meeting so that there is no ambiguity later on.
Government’s Role in the Matter
The government has asked all business and sectors to conduct their business activities remotely. This also includes the government as well. When we talk about the significant nature of decision making at the board level we cannot ignore the fact that presidents and prime ministers of countries are holding meeting remotely as well. Even the UN held their general assembly remotely. This shows that if they can do it so can the board members.
How Can They Vote
The board members can vote on a decision by either show of hands or a specific internal software can be developed for the board meetings where the board members can vote via a specified button.
Written Decisions
Many times, the board has to take written decision. In the case of the pandemic and remote meetings, the board should either be allowed to sign the documents digitally or they should discuss the decision in their remote meetings and then the documents should be sent to every board members residence for signature. It should be done in this way to minimize in person communication as much as possible.
So with the World Health Organization and sovereign governments all encouraging social distancing, it is only fair that businesses start holding board meetings remotely as well.