Bleeding Out: Theranos Oozes With Corporate Governance Lessons

A board of advisers plays a different role than a board of directors, and it may be wise that a company consider having both at the outset, which Theranos did not. “An advisory board doesn’t have the fiduciary obligations that a board of directors does,” explains Peter Gleason, president of the National Association of Corporate Directors. “They’re usually paid advisers in a specific technical area.” Directors, on the other hand, have fiduciary duties that they are obligated to fulfil to shareholders of the company, and they have legal obligations with liability attached to their role.