A board of directors is a group composed of individuals who are accountable for the oversight, governance, and direction of that organisation. They oversee the legal responsibilities of a company and are held to a strict level of accountability. If they fail to meet their fiduciary duties, they may be personally held accountable.
A group of people who advise and coach companies is known as an advisory board. Their advice is more practical, and their focus tends to be on growth, development and strategy, not reporting, governance, risk management and avoiding risk of downside.
Ideally, an organization should clearly define the purpose of its advisory board in all official documents such as meeting minutes and communications via verbal to avoid confusion. This will ensure that they do not accidentally cross-check into the jurisdiction of a board of directors, which could have serious legal implications if they fail to meet their fiduciary responsibilities.
In the real world, this distinction may be blurred and some organizations refer to their advisory board as “the Board.” It is recommended putting it in writing to avoid confusion or accidental mistakes. A formal written statement defining the purpose of an advisory committee helps to reduce the chance of confusion for those involved. It is particularly helpful when members of the advisory committee may be members of an executive board or have just joined an organization for the first time.
www.theirboard.com/whats-the-difference-between-the-board-of-directors-and-an-advisory-board/