Business Governance and Accountability

For many family businesses, the establishment of an independent board of directors provides invaluable guidance, direction and accountability to family members and the business to promote the continued success of the business for current and future generations of family business owners.

The Penning Group offers input and evaluation in the various factors for families considering the establishment of an independent board such as the following:

1. Should the board simply be a non-binding advisory board with very little power or a fiduciary board with express powers to govern the business?

2. What would the board members’ roles and responsibilities be and over what areas of the business?

3. How would the independent board add value to the business?

4. What specific rules and requirements would/should be included in the board charter?

5. How would the board members be compensated?

6. What will the relationship between the board and key management personnel look like?

7. Who and how is the board evaluated and how can board members be chosen and dismissed?

Have you been thinking about establishing an advisory or governing board of directors for your business?