Thursday, January 12, 2006
Building A Board
A board of directors has clear legal responsibilities, such as voting on key corporate decisions (such as accepting outside capital). In a sense, they are part of the management of the firm. An advisory board, on the other hand, does not have legal responsibilities and is typically less formal. Yet an advisory board can be quite valuable for an early-stage company.
This has certainly been important to Oversight Systems, which develops compliance software to help companies deal with such complex requirements as Sarbanes-Oxley. Customers include such biggies as SAP and Oracle.
No doubt, this is a specialized area, and that's why the company's CEO, Patrick Taylor, thought it was imperative to form an advisory board. "We felt the need to connect with industry thought leaders who would help direct our product development to meet the future demands of the market," said Taylor. "For our market of SOX compliance and financial controls, we reached out to accounting professors who are experts in risk management and corporate governance." His group of advisers includes Dana Hermanson of Kennesaw State University, Joseph Carcello of the University of Tennessee and Mark Beasley of North Carolina State.
"These professors connect us with future developments of SEC policies and work to push emerging technology solutions for industry adoption," said Taylor.
posted by Brian Moran @ 8:38 AM