According to the Danish Business Authority's publication "The competent board”, every sixth board is to be described as an aunt board.

Aunt boards are most often populated by the owner's family members or a retired accountant, and really only exist to fulfill the law's requirement that a limited company must have a board. The aunt board does not create any value. The only thing it actually does is sign the annual report.

Research indicates that good management affects the company's performance

It provides more growth in the company when you have a board: that's what the dry numbers say. If you are ambitious with your company, you should seriously consider whether you should have a board or whether you should make changes to your current board so that it becomes more professional. It will, among other things, say that it is driven by competences rather than by friendships and personal relationships.

If your current board members do not possess the skills the company needs right now, you should replace them. After all, your board is employed by you and costs you money. The only sensible thing is to make sure it pays off for your business.

Advantages of a professional board:

• You send a strong signal about the professional operation of your company. It matters when your bank, your customers and your suppliers assess the company
• The board's professional competence can strengthen your company by optimizing, creating development and growth and ensuring that your company acts in accordance with the overall strategy.
• A board can help your company establish networks and contacts with other companies.
• For most people, being responsible for a board is personally developing. You will be challenged on your abilities and decisions.
• Your chance of getting through a crisis unscathed increases if your company has a professional board.

Disadvantages of a professional board

• It costs time. A report must be required, and you must set aside time for meetings and meeting preparation.
• It costs money. A professional board expects to receive a fee for the work.
• Major decisions and new strategic initiatives in the company cannot be decided without consulting the board first. This really means that you help hand over power to the board.
• You must be ready for critical questions to be asked and you must be able to defend your decisions.

Source: Advodan

In essence, it is about what phase the company is in and what your ambitions for the company are. If you have ambitions for growth, internationalization or something else, the extra work a board requires and the surrender of power will be well spent.