Advisory Boards provide valuable support and guidance in today’s increasingly challenging business environment. In smaller organisations, Directors often require an independent sounding board to help them determine strategy or validate significant business decisions before they are made. Seeking support and guidance from an independent director or advisory board may improve financial performance, manage key business risks, accelerate growth, or improve operating performance.
An advisory board member is not a director and act in the capacity as an advisor only. They have no power to enforce decisions on Directors and cannot compel the company to act. Unlike directors, advisory board members can be replaced without following the formal processes to remove company directors.