Bradley attorney D. Franklin was quoted in Boardroom Insider on how to successfully start an advisory board, and the challenges that companies often face when doing so.
“The first problem is that too often, [the advisory role] isn’t documented,” said Franklin. “Someone may come in under an advisory capacity, but the agreement is never properly consummated.”
“You need an agreement on what is the purpose of the board, documenting what you want it to do,” noted Franklin. “Typically, [advisory] boards don’t have a sunset, but it’s great discipline to make sure members have a set term.”
“Certainly you’ll want a confidentiality clause, because advisors don’t have the same fiduciary obligations as board members,” Franklin cautioned.
The full article, “Advisory Board Agreements – 7 Must Haves,” first appeared in the August 2019 issue of Boardroom Insider.