A board of advisers/Advisory board is a panel of experts asked by a firm’s management to provide counsel and advice on an ongoing basis. Unlike a board of directors, board of advisers possess no legal responsibility for the firm and gives nonbinding advice. As a result, more people are willing to serve on company’s board of advisers than on its board of directors because it requires less time and no legal liability is involved. A board of advisers can be established for general purposes or can be set up to address a specific issue or need. For example, some start-ups ser up customer advisory boards shortly after they are founded to help them fine-tune their initial offerings.
Definition