Family Business Boards
Protecting Your Family Business With a Board of Directors
While your business may be family-owned, that doesn't mean it has to be family-governed. If you're concerned about your family operating your business in the future without issues, or if you're concerned that they may not want to, family business boards can help.
What is a Family Business Board?
In business, a Board of Directors helps govern the company. The Board of Directors is responsible for holding others within the business accountable and ensuring that the business is still making the best decisions. While the CEO is still in charge, the Board of Directors operates as a check; they are able to remove executives and replace them.
Why Should Your Family Have a Board?
Family governance consulting is important. Without a board, it's easy to see how a family business could falter. Those who aren't best for the business can end up in charge and decisions may be made through nepotism. A family board makes it easier to ensure that the business is kept healthy while still giving the family control.
How Do You Find the Right Board?
The board is generally made up out of those who are experts within the business such as upper level staff members, or those who are experts in board regulations. Most importantly, the board has to be empowered to make decisions and to speak up when it feels things are not as they should be.
Ultimately the goal of a family business is to be successful and a family business can't be successful if it's corrupt. Family governance consulting can help you make sure your business remains vital and stable. Contact Telos Group to schedule an appointment with a specialist.