23 June 2008
Serving on a Board of Directors or Advisers
One of the highest callings in business is to serve on a Board of Directors. To be asked to serve on a Board of Advisers or Trustees.
In the 1600’s in England the man who was responsible to run the strategic direction of a going concern sat in a chair at the head of a table. The other members sat on benches on each side of the board.
In that time and place meeting tables were actually duel purpose movable boards set upon trestles. The person at the head of the table was called the Chairman of the Board. And so he is today.
Service as a Board member is determined by your willingness to offer your wisdom and judgment and influence — special and unique talents.
Your Business Blogger(R) no longer advises Boards of Directors, the law and liability has complicated this consulting segment — it is best left to legal counsel, unfortunately. The Sarbanes-Oxley Act of 2002 has become the full employment statue for lawyers. Budget for compliance can be $500K. And no one considers serving with out Directors and Officers (D&O) insurance.
But if your company has not gone public and is privately held another form of corporate governance might provide the accountability the business owner wants: A Board of Advisers.
Under a Board of Directors, the company management must obey the Directors. The Board, well, can direct.
Under a Board of Advisers, the company management does not have to listen to this Board. The Advisers can only advise.
Both Board organizations offer the CEO consulting, contacts and access to capital. And the Boss can tell the Board of Advisers to get lost.
But it is the smart CEO who considers the wisdom of his Board of Advisers, his board of elders.
Following is a Powerpoint presentation my company would give back at the turn of the millennium.
Yes, you may certainly use the ppt. A link this site would be swell.
Thank you (foot)notes:
Full Disclosure: Your Business Blogger(R) currently sits on a number of Boards of Advisers and has served on Boards of Directors.
See Inc.com for more on corporate governance.
Alert Readers know that one does not lobby for the position as Board Member. Candidates are invited.
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