101 workshop for startups: boards and advisors

BOA R D S A N D A DV IS O R S

BY S I M ON P. BA R RY , M E N T OR AT M AS S C HA LL EN G E

• What is a Board and what does it do?

• What is an Advisor and what do they do?

• How to form a Board and find Advisors

• Group Exercise • Summary• Q&A

• Commonly known as the Board or Board of Directors

An elected group who act as representatives of the shareholders

They have the highest authority in the organisation

They are responsible for the salaries, approval of financial plans, acquisitions, stock splits and legalities

WH AT I S A BOA R D A ND WHAT DOE S I T DO ?

• An outside director isn't part of the company, but serves on the board

• An inside director is part of the company

• An executive director also hold an executive role in the organisation

• A non executive director is not an executive

THE BOARD: Executive and Non Executive Directors

THE MANAGEMENT: Executive Directors and Managers

THE COMPANY

SHAREHOLDERS

Company’s Governance Structure

Company's constitution

Corporate Governance

Code

Companies Act 2006 (as amended)

The rules that govern the Com-pany and its Board.

D I R E C T O R S ’ D U T I E S C O D I F I E D U N D E R T H E C O M PA N I E S A C T 2 0 0 6

• 1. To act within their powers.• 2. To promote the success of the company.• 3. To exercise independent judgement.• 4. To exercise reasonable care, skill and diligence.• 5. To avoid conflicts of interest.• 6. Not to accept benefits from 3rd parties.• 7. To declare interests in any proposed transaction or

arrangement.

• A board advisor is not a member of the board

Board advisors provide contacts, advice, support, potential

In early stage startups they can provide credibility

They are compensated by expenses, lunch, drinks, cash, stock options or a combination

WH AT I S A N ADV IS O R A ND WH AT DO T HE Y DO ?

HOW TO FORM A BOA RD• The shareholders

form the board• It should be a diverse

range of skills• There should be

some outside members

• Networking is great for finding members

H O W T O F I N D A DV I S O R S

• Hustle• Hustle• Hustle

• Choose your Board and Advisors wisely

• Try and get a range of different types of people

• Look for value add• Don't be bullied by crazy

demands

G R O U P E XC E RC I S E

SU M M A RY

• Be bold• Be brave• Don't be afraid to

approach people• Network• Hustle

T H A N K YO U !

Any questions?

S IM O N P. B A R RY@eggwhisk

simon.barry@sparkzeroglobal.com

www.sparkzeroglobal.com077 66 52 32 77