An Advisory Board (AB) can be an excellent and very flexible way to get third-party input without impacting the voting rights of the company.
There is no formal structure required for an AB, meaning the AB can meet with the senior management team as and when required.
Typically, an AB would reflect expertise in marketing, HR, finance, digital and legal arenas, so that management has an appropriate sounding board, when needed.
By contrast, an Observer sits alongside a formally appointed Board with a remit to receive Board papers, listen and comment during Board meetings, without having the right to vote.
They are also a very effective means of adding expertise to the Board when needed, without the necessity of a formal appointment.
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