Advisory Board

Every company will have a form of governance board who manage the day-to-day operations of the company and make decisions about it. Significant shareholders or investors are represented for voting purposes and it may include other members who are not directly working within the business, such as a virtual CFO.

An advisory board fills a skills gap for smaller businesses that can’t afford to have every discipline represented on the governance board. It will contain individuals with speciality roles as required (for example) in financial, legal, commercial, human resources, marketing etc. An advisory board will typically convene to share feedback on the business at regular intervals, or in response to an issue or need. The function is to provide guidance, not to take decisions, so it complements the governance board.

As opposed to bringing in an advisor or consultant, and advisory board will be retained for a period of time so they are attached to the business and the guidance would include input from each of the disciplines represented. This can enable ‘early warning’ for problems (such as a potential legal requirement of a proposed strategy) as well as a full context consideration of the agenda items reviewed at each meeting.