Function and Responsibilities of the Board of Directors in the Family Enterprise

A family enterprise needs sound governance mechanisms to achieve its goals and to succeed down the generations. These governance structures contain the plans, statements, policies, rules and agreements that allow the family enterprise to clarify its direction and identity. In this technical note, we will focus on one of the most important business governance structures in the family enterprise: the Board of Directors and its connection with the Executive Committee. The main functions of the Board of Directors and the Executive Committee, as well the challenges faced by these governance structures, are explained in the context of a family enterprise.