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The board of advisors is a group that will bring impactful knowledge in the company. It's an informal group of experts and advisors that will help with different perspectives and ideas. Their input is essential in decision-making but, compared with the board of directors, they cannot be held liable for the mistakes made in connection with the company's duties.
The advisors in the board are selected by the management team based on the company's present needs; the aim is to bring in new people who support and have the necessary knowledge in the areas that need fresh input. BOA is more flexible in structure and in being managed compared to the board of directors. In terms of rewarding the BOA members, it differs from company to company; the type of compensation is decided by the business management.