Friday, January 18, 2013

Governance Issues for Closely Held Corporations and Family Businesses


To the typical challenges that all commercial enterprises face, there are a few additional ones that accrue to closely held corporations and family-owned businesses. This seminar presentation addresses these challenges, explores their genesis and points to options that can attenuate their most pernicious effects. By these reckonings, closely held corporations can level the playing field and compete head-to-head with firms characterized by widely distributed and even public ownership.

Pressing the firm’s competitive advantage in the marketplace depends on capably prosecuting a portfolio of complex, interrelated value-creation and risk-attenuation tasks. The judgmental component of these decision tasks is very demanding.  Without the Board having been conferred with a superior decision making capability – it is unlikely that the firm can optimize its competitive positioning. The absence of outside or independent directors tends to elicit greater fiduciary liability. This factor derives from both the market perception of fallible judgment that derives from non-independent boards – and from the reality that non-independent boards are rarely able to “challenge the boss” and thereby widen the domain of alternative courses of action.

Read Dr. McDaniel’s White Paper and join The Network of Family Businesses for a virtual educational Webinar on Tuesday, January 22nd, 2013 at 11:00 AM EST, with Dr. Richard McDaniel of Fiduciary Guaranty Corporation of America.

This discussion will explore unique challenges to Family Businesses, the fallibility of human judgment and its consequences, and new directions for the modern Family owned business.

Dr. McDaniel is the primary creator of the discipline of Decision Accounting™ and the Ad Hoc Decision Audit™ Technology upon which it is based. 
Dr. McDaniel was one of five inside advisors to, and representatives of, H.L. Hunt of Dallas (Hunt Oil Company). His past positions include: President and Chief Operating Officer of Mortgage Banc of Dallas; Regional General Sales Manager for Pulte Home Corporation in Dallas/Ft. Worth. Richard graduated from Harvard College and earned a Ph.D. in experimental psychology from the University of Texas (Arlington).

Registration to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar is available at: http://www.netfamilybusiness.com

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