No. Most day-to-day operational decisions are handled by officers (often the founders). Only major financial, structural, or equity-related matters typically require board or shareholder approval.

Investors typically negotiate board seats at the Series A stage or later, once institutional capital is involved.

Not necessarily. Many founders keep advisors in an informal capacity or through an advisory agreement rather than granting them board seats.

Most early-stage boards start with 3 members, expanding to 5 or 7 as the company grows.

If you incorporate as a C-corporation, yes. An LLC may not require one, but corporations legally must have a board.

If fiduciary duties are involved, decisions should follow proper corporate governance—through board votes, shareholder approvals, or documented resolutions.

The best practices are transparency, documenting decisions, avoiding conflicts of interest, and seeking approval from the board when needed.

Yes. Breaches of duty can expose directors and officers to lawsuits, financial damages, and even removal from their roles.

Yes. Founders who serve as directors or officers owe fiduciary duties of care and loyalty to the company and its shareholders. Even if a founder doesn’t hold a formal title, their influence may be scrutinized under fiduciary standards.

It is best to involve counsel early in the process. Attorneys can advise on structure, draft necessary documents, ensure regulatory compliance, and help preserve tax advantages.

A voluntary reorganization is initiated by a company’s leadership to improve efficiency or strategy, while an involuntary reorganization is often court-ordered in bankruptcy proceedings.

The timeline depends on complexity. Simple restructurings may take a few months, while larger mergers or court-ordered reorganizations can take a year or more.

The most common types include mergers, acquisitions, spin-offs, recapitalizations, and bankruptcy reorganizations. Each has different strategic and financial implications.

Due diligence allows buyers to review financials, contracts, and liabilities. For sellers, preparing in advance avoids surprises and strengthens negotiating power.

An ESOP transfers ownership internally to employees, preserving company culture, while selling to a competitor often results in consolidation and market expansion.