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Also known as: observer rights, board observer rights

Board Observer

ConceptualLegalOperations

Definition

Board Observer: A board observer can attend board meetings and access board materials but cannot vote on board matters. Investors who don't warrant a full board seat often receive observer rights instead.

Example Usage

“Our smaller seed investors received board observer rights rather than full board seats.”

Common Misconceptions

Observers have no influence. They can participate in discussions and provide valuable input.
Observer rights are meaningless. Access to board information is valuable for investor oversight.
Only investors get observer rights. Some companies give observer rights to key advisors.

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