A Board of Advice help is not a social event
Business Advisory Services Update
Like most things in business, the more you plan and then monitor the implementation of those plans, the more you achieve better results. The same applies to a Board of Advice.
It is not a social event, it is not even a casual discussion over a cup of coffee or tea.
The Board of Advice can become an integral part of the structure of the business, particularly where there is only one Director appointed, or two Directors with one not being heavily involved in the business.
An important point to consider is that the Board of Advice’s role is strictly to render advice. The final decisions are to be made by the Directors.
This means that in the Board of Advice meetings, the minutes should state that any suggestions by the Board of Advice members are only advice being submitted to the Board of Directors for consideration. If the Directors see fit that action is warranted, this suggestion will be marked as “action”.
The Board of Advice can play a very important role in the internal control and corporate governance system of a company, a partnership, or even a sole trader business.
The best practice for the Directors is to invite 2 or 3 people who have business expertise that will supplement the knowledge and skills of the Director(s).
Normally, the accountant for the business would be a member of the Board of Advice. The other persons appointed would bring knowledge and skills in other areas such as legal, engineering, marketing, selling, social media and other areas on which the Directors believe they need more advice.
ESS BIZTOOLS is presenting a complimentary webinar on Thursday 15 June at 12pm AEST, to discuss the role of a Board of Advice and how accountants can raise this concept with clients as a contribution towards achieving a higher level of corporate governance. Click here to register. You can claim CPD point if you are a CPA Australia member (must attend the duration of the webinar).
