A Board of Advice can offset loneliness

There needs to be a system of when meetings will be held and the reports to be submitted if a Board of Advice is going to add value to the Director.

A system needs to be established for the preparation of reports relating to:

Manufacturing or the purchase of products for sale

Supplies sourcing

Inventory levels summaries

Sales

Digital sales

Social media commentary affecting the industry and the company

Debtors – debtors days outstanding

Creditors – creditors days outstanding and exposure for special class creditors

Financial performance report for the previous month

KPIs and business metrics

For effective advice, the Director should ensure that details of bank negotiations are supplied to the board of advice.

Details of capital expenditure are submitted

When developing or updating the business plan, the Board of Advice members should have some involvement even if it is only the overview.

It’s important that the Leadership Team are briefed on the reasons for the appointment of a Board of Advice and understand the material that will be submitted to the Board of Advice Members.

The Director should ensure that he/she negotiates a Board of Advice Member terms of engagement document, which should be the same for each of the current Board of Advice Members relating to:

Appointment

Remuneration

Board of Advice Member outlays reimbursement

Board of Advice Member’s engagement if engaged for any other professional services

Details of when meetings will be held

Confirmation that all documentation is confidential

The process for the preparation of minutes of Board of Advice Meetings

Details of any other assignments that might be allocated to a Board of Advice Member.

To be effective, the Board of Advice Members should receive reports and communications at least  three working days prior to the meeting, so that they turn up to meetings with their ‘brain in gear’, ready to offer advice on issues to which they have been alerted.

Many Company Directors, especially if they are the sole director, find they have difficulties because they normally have to make all of the decisions alone.

A properly structured, well thought out and organised Board of Advice can be a significant benefit for many directors of private companies. They have a small group of people who understand business, who are able to listen and advise them on sensitive issues.

If you are considering appointment of Board of Advice for your company and need to know more, contact Towers Business Development on 1800 232 088 or email