Three Reasons Your Company Should Have an Advisory Board
Privately held companies — especially those owned and operated by families — often have no formal boards. Even if the board exists, many hold a “board meeting” once per year at which the family shareholders and the CEO provide only general business updates. But this often leads to a dearth of both expertise and vital oversight, weakening a business’ ability to adapt and thrive. In this article for Private Company Director, Wingspan Partner Maryann Bell discusses an alternative for privately owned companies when it comes to ensuring good governance: a non-fiduciary advisory board.
In the article, Maryann details the three key reasons why you may want to consider creating an advisory board comprised of independent experts:
- Industry expertise: A board comprised of experts in what your company does provide valuable insights that board members who are family members or close associates typically cannot.
- Professionalism and governance: An advisory board can stand outside these circles and provide needed advice, accountability and strategic oversight.
- Interim management and succession: In the event of an owner or appointed CEO becoming incapacitated or needing to be removed without a succession plan, the advisory board can step in to run the company on a temporary basis, with its expertise and independence providing solid rationale for taking on such a duty.
Read more about the value of an advisory board for privately owned companies by clicking the link below.
For more content, check out Wingspan Insights.
