Document background
The Advisory Board Agreement serves as a critical document for companies seeking to formalize relationships with industry experts and experienced professionals who can provide strategic guidance without taking on formal board director responsibilities. This agreement, governed by U.S. law, typically outlines the scope of advisory services, meeting attendance requirements, compensation structure (including any equity components), and confidentiality obligations. The document is particularly important for startups and growing companies that need specialized expertise but aren't ready for or don't require full board members. The Advisory Board Agreement helps protect both parties by clearly defining expectations, responsibilities, and limitations of the relationship, while ensuring compliance with relevant securities laws and regulations, especially when equity compensation is involved.
