Article Archives >> To the Point

Can a husband and wife be members of the board of directors? And can a member of the Board be a paid employee of the corporation?

Yes and yes. Although a few states may have laws that required a majority of the Board to be “independent,” i.e. unrelated to each other, I am not aware of any state that prohibits spouses from serving together. Whether or not it makes sense, of course, depends on the circumstances. (See Ready Reference Page: “The Key Question: Whose Organization Is It?”)

It is also possible to have employees serve on the Board, but it is a very rare event in which any employee other than the CEO serves on the Board. Perhaps if a husband and wife pair of founders both work for the organization it would make sense, but having subordinate employees on the Board can often cause problems of authority.

Article Archives >> To the Point

Nonprofit Mergers, Acquisitions and Affiliations

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