A board of directors is a group of individuals who are responsible for the management, control and direction of the organisation. They are responsible for the legal responsibilities and accountability of a company. If they fail in their obligations to their fiduciary obligations, they may be personally accountable.

A group of people who advise and mentor the company is called an advisory board. They provide more hands-on advice and tend to focus on www.theirboard.com/whats-the-difference-between-the-board-of-directors-and-an-advisory-board/ growth, strategy and development, rather than reporting and reporting, risk management, governance and avoiding downside risks.

Idealy, an organization should clearly define the role of its advisory board in all official documents like meeting minutes, as well as in oral communications to avoid confusion. This will ensure that they don’t accidentally cross over into the territory of being a board of directors, which can have serious legal implications for members if they’re not fulfilling their fiduciary obligations.

In practice, this distinction is often blurred and some organizations refer to their advisory board as “the Board.” It is recommended making it clear in writing to avoid any confusion or accidental mistakes. A formal written declaration that clarifies the role of an advisory board will help to minimise confusion among the people involved. This is especially useful when members of the board were previously part of a board or are new to the organization.