Does your board of directors have an old boys’/girls’ club problem?

The board selection process in family companies at times can appear rigged to perpetuate incumbent directors. Is this a good or a bad phenomenon? That depends on many factors.

Imagine the frustration of a family shareholder who believes the company’s board is not functioning well but feels powerless to effect change. Though such feelings sometimes reflect sour grapes about a past issue, not being selected for the board oneself or a family squabble, they can also arise from legitimate worries about the board.

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