Director FAQ: Advisory Boards

In brief: Advisory boards offer companies access to specialized expertise and valuable (though nonbinding) advice. Members of these bodies have no legal or fiduciary duties to the companies they serve, therefore, advisory boards are different in scope, operations, and structure from statutory boards. This memo provides guidance to companies interested in creating and operating an advisory board.

This resource can help your board

• Understand the purpose and function of advisory boards
• Evaluate the benefits and drawbacks of forming an advisory board

Most relevant audiences: the full board, corporate executives