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If you’re looking to grow your business and you want someone more experienced to help you navigate building a growth company in 2025, it’s a good idea to consider bringing on a board advisor. With the business landscape constantly evolving – especially in today’s digital and regulatory environment – having expert guidance is more critical than ever.
This is especially important for first time entrepreneurs who may not have extensive experience running a large organisation, but find themselves at the helm as rapid growth propels their business into new territory.
But how can you agree on exactly what the board advisor will bring to the table?
A Board Advisor Agreement can help.
What Is A Board Advisor?
A board advisor is a seasoned professional with specialised expertise or in-depth knowledge about a particular industry. As a business, you can engage a board advisor to provide strategic advice on management practices and growth strategies. Their insights can prove invaluable as you aim for sustainable growth in a competitive market.
They can guide you in building a company with robust foundations that can scale effectively – ensuring you are well prepared for the challenges of 2025 and beyond. For more on best practices in setting up your business foundations, our Business Structure Guide offers useful insights.
What Is A Board Advisor Agreement?
A Board Advisor Agreement is a formal document that outlines the responsibilities, expectations, and rights of your board advisor. It is essential to have this agreement in place when you bring a board advisor on board, as it clearly stipulates the terms of engagement and protects both parties.
In today’s fast-changing business environment, the agreement may also incorporate modern elements such as electronic signature protocols and stipulations for remote consultations. For further clarity on how to draft legally binding agreements, you might find our article on what makes a contract legally binding especially useful.
Why Do I Need A Board Advisor Agreement?
If you’re appointing a board advisor, it is imperative to have a Board Advisor Agreement in place. This agreement helps avoid any confusion or misunderstanding by clearly defining the terms of engagement.
This is particularly important because board advisors are generally not governed by any other law or document once they come on board. Clearly stating the terms helps ensure that your advisor commits to what is expected of them, considering the significant value they provide through their professional network and industry expertise.
The Board Advisor Agreement also plays a key role in protecting your business’s intellectual property and any confidential information. For example, our guide on protecting your IP with a trade mark can offer additional insights into safeguarding your assets.
Moreover, having a formal agreement in place ensures your business maintains proper governance to address potential conflicts of interest. This is especially crucial if the board advisor is not a director on the board, thereby not subject to the same director duties under the Corporations Act.
The agreement clarifies the relationship between your business and the board advisor, providing protection for the interests of both parties. It is particularly critical when equity is involved in exchange for advisory services – you want to ensure your company does not relinquish more equity than necessary.
What’s Included?
In our Board Advisor Agreement package, we begin with a phone consultation with one of our experienced lawyers who will take your instructions, advise you on any legal issues pertinent to your business, and answer any questions you may have regarding the Board Advisor Agreement. This initial consultation ensures that the final agreement is tailored to your business’s specific requirements.
The Board Advisor Agreement will typically include clauses such as:
- The scope of the advisor’s role, expectations, and responsibilities
- Performance standards for the advisor
- Remuneration details, including equity arrangements
- Reimbursement of expenses
- Provisions regarding intellectual property and confidential information
- Term and conditions for termination
- Warranties and indemnities
Additionally, our updated service now covers clauses addressing digital communication protocols and remote consultation expectations, ensuring your agreement remains robust in a tech-driven 2025 environment. For a deeper understanding of drafting tailored agreements, please explore our Contract Review and Redraft service.
Need Help?
If you’re ready to get a Board Advisor Agreement drafted for your business, Sprintlaw’s friendly and experienced lawyers are here to help guide you through the legal process. We understand the challenges of today’s business environment and are committed to ensuring your agreement meets current regulatory standards.
For a free, no-obligations consultation on your options, reach out to us at 1800 730 617 or team@sprintlaw.com.au. You can also check out our success stories and case studies to see how we’ve helped other businesses secure their growth with robust legal agreements.
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