Question

Explain the difference between the Board of Directors / Board of Advisors.

Answer 1

Corporation: The corporation is that form of business organization wherein the business is enjoys separate entity form its owners. The owners of the business are called shareholders. The management of the company is however is seen by the members elected by the shareholders.

The members which are elected by the shareholders for controlling the management of the company are called directors. All the directors of the company are collectively called board of directors. They see the routine and day to day activities and take decisions for the organization. On the other hand, the board of advisors refers to the people who are advisory to the board of directors. The directors takes advises from these people before taking decisions for the company. The advisors are not capable of taking decisions for the company. They just can advise the board of directors in taking a decision or operating the workplace. For the company, BODs are required whereas board of advisors are recommended for better decision making.