Directors' Briefing: Advisory Committees, June 2017

Introduction

An advisory committee is a tool available to a corporation's board of directors. It will consult with Management and the board in order to provide input and guidance. Advisory committees will make recommendations to the board of directors or Management of the corporation based on processes set out in its Charter. The recommendations are not binding, but can provide the strategic direction a corporation may need in making business decisions.

A corporation may consider appointing business persons or professionals with specialized expertise to serve on an advisory committee.

The Advisory Committee's Charter

Purpose

The advisory committee's Charter should outline its purpose and make it clear that the recommendations made will not be binding. As set out below, this will help insulate members from potential liability.