Fiduciary Guaranty Smart GovernanceTM Program

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. Most of these challenges derive directly from the market perception that the quality of corporate governance is compromised in the closely held corporation. Notice  our  invocation  of  the  term  “market  perception.”  Sometimes  “perceptions  are  reality”  in  the  minds  of   investors,  regulators  and  the  pesky  plaintiff’s  bar.

Access to capital – either debt or equity issues – can be restricted because of the widely held belief that the directors are less likely to think independently of management and to hold management accountable to “best   practice”   standards. This is especially troublesome when the board IS management. The need for either outside directors OR a third party-monitored  decision  making  process  …  becomes  imperative  to  open   the money spickets for debt and equity capital.

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 judgemental 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.  

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