The Board of Directors Compliance Agreement will also include meetings in which the Board observer may participate, whether it is all or selected meetings. It will also extend to materials that the company will make available to the board observer for board meetings. If your company is considering appointing a Board Observer as part of your corporate governance framework, there are few considerations to consider. The company and the board observer should understand the rights, obligations and commitments of the board observer. You can do this by implementing a comprehensive board observer agreement. This article will explain that, unlike the role of business leaders, corporate law does not regulate the role of board observers. Therefore, the rights and obligations of a board observer should be defined by contract. This avoids misunderstandings about their role and provides legal protection for your business. 1.2 Notwithstanding the contrary provisions, the company may exclude the observer from access to materials, meetings or board documents if the Board concludes in good faith that (i) such exclusion is reasonably necessary to preserve the privilege of the client lawyer or the working product between the company or its related company and its advisor; (ii) these documents or advisory discussions relate to the contractual or other relationship between the company or its related companies with the investor or its related companies, or to actual or potential transactions between the entity or its related companies and the investor or its related companies; (iii) such exclusion is necessary to avoid any conflict of interest or limited disclosure by an agreement to which the entity or one of its related companies is involved or bound by other means; or (iv) such exclusion is necessary to protect competition information from the company or one of its related companies. Any committee of the committee may also exclude this observer from access to all communications, minutes, approvals and other documents that it makes available to them, at its sole discretion, to the members of that committee or to a meeting of that committee or any part of it. The company and the investor are the main parties to the board`s compliance agreement. However, since the agreement will impose obligations on the observer, the observer should be designated as a party.