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What does a “Board Observer” do?

I have seen profiles like the “Board of Directors”, “Director”, etc; which the investors are given after mostly leading a major round.

But, what exactly is the meaning of “Board Observer”. I have seen this on Matt Cohler’s LinkedIn, where he assumes that role in Uber, Zendesk, etc.

Answer 8425

The key difference between someone a being a Board Member and a Board Observer is that the Observer does not have the ability to vote on decisions. This isn’t to say that person may or may not have a say in the content of discussion as many company boards - in particular start-ups can have board meetings often and make decisions without voting. So your question about what they do is mainly going to be offering advice and guidance.

Some boards operate with Silent Observers; people who are in attendance, but cannot say anything either as what they say may undesirably determine the outcome of any decisions being made.

But again, the key is that they cannot vote when a motion is brought to the floor.

Noting the position title on a profile page or business card means this person is involved enough with company to at least have a professional relationship with one of the board members and his opinion into the company’s operations is valued. Not only that, but it is also a good indicator of the kind of influence this person has and their level of interest in a company.


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