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Corporate boards make collective decisions for the company’s betterment and to protect the interests of the business owners. In traditional board settings, board members met in emergency board meetings, or AGMs. That has changed significantly in the modern-day corporate world, and the management communicates more regularly.
It is difficult for businesses to arrange more physical meetings for directors and other board members. That’s why there is a massive increase in demand for online communication platforms like virtual data rooms.
How do boards use virtual or online data room software for board communications? Here is a detailed guide on data room software for board communication management.
What Is Virtual Data Room Software?
A virtual data room (VDR) or electronic data room is a digital document repository with advanced project management and online communication tools. In other words, virtual data rooms are virtual data management platforms where you can store, share, and distribute data and communicate differently.
Unlike meeting management solutions, data rooms are multi-purpose business tools that automate meetings and securely store information that can be shared or accessed whenever needed.
That is why virtual data rooms are used in investment management, mergers, acquisitions, clinical trials, fundraising, real estate, and board document management.
|Among many other use cases, board communications are one of the most popular uses of data rooms. You can find out how virtual data rooms facilitate board management here: https://www.idealsvdr.com/board-communications/.|
Why Are Virtual Data Rooms Important for Corporate Boards?
#1. Better and Faster Board Meetings
Effectively managing board meetings remains a challenge for the management. They have to use multiple pieces of software for audio and video conferencing, data storage, task management, and board book preparation.
Digital data rooms give management the luxury of managing everything in one place. Here is how data room software helps manage board meetings:
- VDRs have customizable templates for preparing meeting agendas and then sending them to every expected participant.
- Meeting participants can access any document immediately from the VDR repository.
- Users can use the presenter mode to deliver their presentations through visual support.
- The management can record the meeting for future use.
- VDRs allow you to automate the note-taking process.
- Participants can cast votes and sign documents electronically in VDRs
- The Q&A tool in the VDRs is helpful for real-time Q&A sessions.
- Task manager helps assign, manage, and track users’ performance.
- Meeting minutes builder automates minutes preparation and distribution.
#2. Centralized Data Management
As online data room software is a cloud-based technology, boards use it as a central document repository. Centralized data management ensures all the documents needed for governance are in one place. Board books, policy manuals, meeting minutes and agendas, financial statements, M&A proposals, etc., can be stored in one place for board members.
Also, the management can categorize data in any preferred manner, and VDR users can access it from anywhere, anytime. The best virtual data room providers in the market have dedicated mobile apps for 24/7 access. Many data room providers even give offline access to VDR documents.
#3. Document Control
100% control over documents is another factor that differentiates virtual data rooms from other meeting management platforms. The VDR management can set file access permissions for board members, investors, or committee members accordingly.
For example, top secret or highly sensitive material can be prevented from unauthorized use through the fence-view feature. It limits users from viewing the document; they cannot scan, edit, control, save, delete, print, or photograph that file. Document protection features include digital watermarks, document shredding, data encryption, and document access revocation.
#4. Real-Time Data Sharing and Communication
Apart from board meetings, data sharing is much faster and safer in virtual data rooms. Board members can even collaborate with their subordinates in data rooms. They can share, edit, annotate, and distribute files in real time.
VDRs also allow bulk document upload and sharing; users can also schedule documents to be shared at a future date.
Data rooms have chat messengers that users can use for one-to-one conversations and group chats. Other communication tools include live polls and dedicated email.
#5. Platform Security and Transparency
In addition to document control, virtual data room platform security is simply second to none. Features like two-factor authorization eradicate the chances of unauthorized entrants in the VDR. Data room administration can immediately delete any device from the VDR and any file saved or downloaded from the platform.
Modern-day data room services keep everything transparent through audit logs. These are detailed audit reports that provide full details on data room activities.
Virtual data rooms create a centralized platform for boards where they can manage their meetings, share and store documents seamlessly and safely, communicate in real time, and protect their important data from data leaks or thefts.