board of directors vs advisory board
The decision to choose the best board structure is a significant one with significant implications. Two options that are commonly discussed are boards of directors and an advisory board. Both have distinct functions and will impact the organization in different ways. Your objectives and needs will determine which is best for you.
Advisory boards are less formal than a board of directors and are generally easier to set up, expand or reduce in size as needed. Advisory boards are usually formed for a limited period and the members can be removed easily in the event of need. A board of directors is more difficult to retain and recruit because they are legally liable for the decisions they make.
An advisory board is comprised of people who provide advice and assistance to the business but are not legally bound to it. The members of an advisory committee are an opportunity for the executive team and the CEO to tap into their expertise and experience, assisting them make informed decisions that will affect the company. An advisory board can be a useful tool for businesses in the beginning stages of development, because it provides mentoring and guidance while removing the burden of oversight, governance and control.
When selecting the right board for you, consider whether it will help meet your current requirements and establish a long-term business strategy. When you are looking for board members, look for people with diverse expertise and skills that are open to new ideas and ideas.