Strong governance enhances a family business’s value
Abstract: Too often, family members view their business as a source of wealth without making sure that the company is managed by those best suited for the job. Good governance — carefully documented in writing — can help ensure a family business’s survival as it makes the transition from one generation to the next. This article shows how the business’s organizational documents can lay a solid foundation for good governance. It also explains the importance of having an independent board, along with legal agreements designed to keep the business in the family.