The best structure for your board for your company is an important decision with significant implications. Two structures that are commonly discussed are boards of directors and an advisory board. Both have distinct roles and will impact the organization in different ways. Determining which of the other is right for you will come down to your find more information goals and needs.
Advisory boards tend to be less formal than traditional boards of directors. They are also more simple to create and expand, or shrink, as required. Advisory boards are also often formed for a limited period and members can be removed easily in the event of need. A board of directors is more difficult to keep and recruit since they are legally liable for the decisions they make.
An advisory board is a group of people who provide advice and assistance, but are not legally bound to the business. The members of an advisory board serve as an opportunity for the executive team and CEO to tap into their knowledge and experience, assisting them make informed decisions that will affect the business. An advisory board is a great tool for early stage companies because it can provide guidance and guidance, without the responsibility of governance, oversight and control.
When choosing the best board for your business take into consideration how it will aid you in meeting your current needs and implement a long-term plan. When recruiting board members search for those with diverse capabilities and expertise who are open to new ideas and concepts.
