Board of Directors vs. Board of Advisors

The basic difference between a board of directors and a board of advisors is that the former is a legal requirement and has fiduciary duties to the shareholders of the corporation and the latter is not a requirement and bears no legal responsibility to the shareholders of the corporation.  The board of advisors concept was initially prevalent in the bio and scientific start-up catogories and those boards consisted mostly of technical people that could bring high level technical expertise that wasn’t otherwise needed on a day-to-day basis.  Eventually, other technology companies saw the utility of having a board of advisors and eventually the concept migrated to more than just bio and scientific start-ups. 

Here are some other aspects of boards of directors and boards of advisors that may be helpful for you to know:

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