M is for...
Materiality is a multifaceted concept warranting a comprehensive understanding by directors. This in-depth article examines materiality across legal, governance, accounting, and financial contexts. It provides extensive analysis of materiality principles, standards, quantitative thresholds, qualitative criteria, and real-world applications. With thoughtful frameworks and case studies, this guide aims to empower professionals and organisations to make sound judgements in regards to materiality . Defining Materiality At its foundations, materiality refers to the relative importance, relevance and significance of specific information or issues in relation to a given question, evaluation, judgment or decision.
A meeting agenda is a document that provides a high level outline of the topics that are going to be discussed at a specific meeting. Ideally the Agenda is prepared and distributed in advance of the meeting to ensure that all attendees are able to come to the meeting prepared and aware of the topics that will be discussed. The agenda provides a roadmap for the meeting, helping to keep the discussion on track and ensuring that all important topics are covered.
A “majority” refers to the specific number (or percentage) of votes from directors that are needed to pass a motion or make a decision. A majority is defined as more than 50% of the votes cast by the directors who are present at a meeting and entitled to vote. A majority is an important tool in all boardrooms because it is used to determine the outcome of decisions made by a board.
Minutes are a reference document for board members and others who weren’t present during the meeting that captures key information from the meeting. For certain organisations they are a form of legal document and can also be used as evidence in cases of litigation since they contain facts about the decisions made by board members. Minutes must be brief but still capture key information that will help board members meet their legal requirements.