Considerations in Drafting Board Advisor Arrangements

In Brief

• There is little case law or other legal authority addressing the rights, duties, and potential liabilities of board advisors, so how do you advise your clients who use advisors or are considering using them?
• Like board observers, board advisor arrangements are defined almost entirely by contract, and practitioners can ensure these contracts are drafted with precision.
• Key contractual provisions include those that specify the advisor’s duties, term of service, compensation, information and participation rights, and confidentiality and privilege, among others.