Advisory Board

Term Main definition
Advisory Board

A group of outside advisors to a company, typically with expertise, experience and/or contacts in the company's industry and/or markets, formed by a business for the purpose of providing informal guidance, advice and assistance to the company's management.

An advisory board is intended to be distinct and separate from the board of directors.  If formed properly and operated correctly, an advisory board does not have the formality, role, or fiduciary duties of the company's board of directors. Advisory Board members typically do not interact with each other but more often each member of the Advisory Board would mentor or advise one or more officers concerning particular strategic, business, and operating matters in that person's domain expertise.