As we help our approved provider clients prepare their governing bodies to include a majority of independent non-executive persons, we are continuing to see questions and confusion about whether advisory or non-voting persons can help to meet this requirement. The Commission’s Regulatory Bulletin (RB2023-23) released 28 November 2023 also helps to clarify certain aspects.
In our 17 October 2023 alert, we dispelled the myth that a member of the governing body need not be a director. For most approved providers, including companies and associations, the governing body will be the board of directors or committee of management, however described.
We have recently been asked by a number of providers whether they can appoint “associate directors”, advisory or non-voting directors to their governing body. The idea arises from broadly circulated comments from some advisors.
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