The creation of a strong and competent board of directors is a complex concept in publicly traded companies, but what happens when your board of directors is also your family?  Research and best practices point to the importance of establishing a structured process which aims at keeping the business issues and the family issues separate. Separating the family from the family business doesn’t necessarily mean you are ignoring the family but creating an alternate structure where the family can have their voice heard. Governance is the umbrella under which all these various structures can be found.

 

Articles of Interest:

Family business transfers wealth to the next generation

Harvard Business School: Working Knowledge

Part One: Governance, what is it?

Part Two: The intricacies of creating a board for the family-run business.

Part Three: Governance of the family

PwC: Family Business Corporate Governance Series:

What is a board’s role in a family business?

Building or renewing your Family Business Board

CEO Succession Planning

Meghan’s Blogs on Governance:

Why Families Should Compensate Their Family Council Chairs

Developing and Selecting Qualified Family Directors

The Purpose of Strategic Family Councils

Why Families Should Compensate Their Family Council Chairs

The Family Business Consulting Group Resources:

Blogs:

Embracing Change and Honoring the Past: The Challenge of Family Business

KPMG Insights:

The Benefits of Governance

Trend towards formal board of directors in family businesses globally

The Three Enablers: Clarity, Culture, Communication

How to Generate Emotional Attachment to a Business