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 guides 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