Board Observer Agreement

Summary

This precedent is an agreement that grants an investor the right to appoint an individual, referred to as a board observer, to attend board meetings of the company that grants the right. This precedent includes practical guidance and drafting notes. The observer is not authorized to vote and is not subject to fiduciary duties or other duties and responsibilities of directors. However, the observer typically does have a right to participate in board discussions. For more information on corporate governance topics and corporate advisory boards, see the practice notes: Corporate Governance: Introductory Concepts, Corporate Governance: Roles and Responsibilities and the precedents: Board Advisor Agreement and Advisory Board Charter.