www.theirboard.com/what-it-takes-to-be-an-effective-board-member/
A board of directors is a set of individuals who are responsible for the oversight, control and governance of an organization. They are accountable for the legal obligations of a company and are held to a strict standard of accountability. If they fail to meet their fiduciary obligations they could be personally responsible.
An advisory board however, is a group of people who provide guidance and mentorship on how a company should run. They offer more direct advice and tend to focus on growth, strategy and development, not reporting or reporting on risk management, governance and avoiding downside risks.
Ideally, an organization should clearly define the role of its advisory board in all official documentation such as meeting minutes and communications via verbal to avoid confusion. This will ensure that they don’t accidentally enter into the territory of a board of directors which could result in grave legal implications if they fail to meet their fiduciary duty.
In practice, this distinction may be blurred and organisations may refer to their advisory board as “the Board.” It is recommended having it written down to avoid confusion and accidental mistakes. A formal written statement that defines the role of an advisory committee helps to minimise the risk of confusion for those involved. This is particularly helpful when members of the advisory committee may have been previously part of a board of directors, or are new to the organization.