The importance of a board of directors in family businesses

It is common to come across family businesses that have grown through generations, and even after years of operation, they still have obstacles in the decision-making process by the partners, precisely because, inevitably, the parties have other issues on the table.

The Board of Directors can be a great way to resolve more sensitive issues within the company, and in this way, ensure its continuity.

See some of the benefits:

· Resolution of deadlocks

As seen in the article on deadlock-solving clauses, the Board of Directors has, among its tasks, the purpose of being the decision-making body. Thus, the directors, elected in the Assembly, will decide on the matter in question, always seeking the best solution for the company.

· Professionalization

The partners can provide that the Board of Directors can only be a director who is qualified for such position, which raises the level of development of the company

· Assistance in the succession process

The Board will assist in any transition of leadership in the company, always aiming at its stability and progress.

This tool is ideal for companies with several partners, which already have a well-defined business structure and are growing. The Board of Directors represents an important corporate governance practice, which is one of the pillars of the ESG - Environmental, Social and Governance, a very current and necessary agenda for companies that wish to be in line with the market, and also very required in hiring by several large companies.