highest legal relationship is fiscal duty!
business is required to have some form of governance. Your challenge
as a business manager or owner is to determine which form is
most appropriate for your enterprise. Not all businesses need
a formal board of directors. Some can get by with independent
advisors. Many first generation enterprises, however, have a
founder that serves as the Chairman, CEO and President and has
the final say over all important matters. Having only one decision
maker in your enterprise, especially as the family and business
grow, increases the risk of both your family and your wealth.
At some point, your business will require outsiders to get involved.
This may mean that some family members may not have direct input
to all decisions. This is where Family Councils are created.
Family Councils serve the needs of all owners and serve as an
appropriate vehicle for influencing the enterprise.
For many people a board is an abstract concept
It's something that although required is often viewed as of little
practical value. This is similar to exercise equipment stored in
the attic. If you purchase the right equipment and use it wisely,
it will add tremendous value to your life. Bringing the most appropriate
governance structure with the best matched people to your governance
structure will improve the health of your family enterprise.