The first question regarding a corporate board is size: just how many people should you have on your board of directors, and how many of them should be employed by the company directly? Tied closely to this is the acknowledgment of the complex legal issues surrounding corporate directors, and their fiduciary responsibility to the firm.
A common mistake we've seen with companies building their first corporate boards are to
either have everyone on the board a member of the company executive team, or to have
the board as a 'party venue' or way to disseminate riches from the company to friends and
family. Both of these are a problem because your corporate board offers you the chance
to have a constant 'reality check' and lots of good advice to help shepherd your business
to success.
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