Startup Funding Espresso – Toxic Board Members

Toxic Board Members

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startups form boards to guide and direct the company.

Some board members can be problematic.

Here are the signs a board member  is toxic:

Their ego outweighs their fiduciary duty to look out for the best interests of the company.

They bully others to get their own way.

They act in their own self-interest without regard to the interests of the business. 

They are a distraction taking attention away from the company.

If the board member is too disruptive it may be time to remove them.

You know this is the case when the board cannot perform their governance duties due to the distraction.

To resolve this, the chair of the board should hold a discussion with the toxic board member and make clear the disruption it is causing.

The chair should call out disruptive behavior when it happens and shut it down.

The chair should remind the entire board of their code of conduct and make clear anything less will not be tolerated.

If the situation continues, then the chair should initiate the process to remove the board member. 

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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