There must be a reason for a family business to have a Board. TABS suggests that a Board is needed when:
- The business owner is in transition or wants to transition out of the day-to-day running of the company but wants to stay active and make a contribution. The Board helps other owners and managers to develop their leadership roles and better understand their responsibilities.
- Owners and managers are different people. With a functioning Board, owners are less likely to get involved with management matters and can concentrate on owner issues. Also, managers will understand the values, needs and goals of the owners and not have to guess what they are supposed to do.
- There are multiple owners. The Board can help resolve contentious issues that often result in long term conflict and a possible lifetime of family dissension.