Board Observer Rights

Term Main definition
Board Observer Rights

A contractually provided right for an investor (or its designee) to attend all regular and special meetings of the board of directors (and often meetings of board committees).

This also typically includes the right to receive information and notices that are provided to board (and committee) members. Importantly, a board observer does not have the right to vote as a board member and generally does not owe the company (as a board member) fiduciary duties or (absent a confidentiality agreement) confidentiality obligations.