This chapter covers
- Why are there board observers, and how do they earn a seat at the table?
- How do some observers deviate from normalcy and end up disrupting the board meeting?
- Is there any way to remove problem board observers?
I’ll be very honest up front: I have no love or tolerance for board observers. If you get one thing out of this anecdote, it will be to push back very hard whenever someone requests or even demands to add a board observer to your board. They are like pet pythons who have escaped or been dumped. They are now an invasive species in the Everglades, and no one is quite sure how to get rid of them. Let’s explore what they are, how they get added to your board, and what you can do to avoid or remove this “species.”
27.1 What is a board observer?
- A board director has legal responsibilities to the company and has voting rights. They are permitted to speak at board meetings.
- A board observer has no legal responsibilities to the company. Their duty is to the organization that appointed them. The board observer has no voting rights. The board observer is not supposed to speak at board meetings.