The owners of closely‐held businesses are frequently limited in number and tied together by family bonds, professional collaboration, or years of continuous work together. One or more of such owners also typically serve as members of the management of the closely‐held business. Although many benefits arise from an arrangement of this type, the close ties, long‐standing relationships, and dual roles that are oftentimes present in a closely‐held entity regularly result in a failure to fully comply with the legal requirements applicable to the governance of the entity.
This presentation will identify several governance errors that are commonly made in closely‐held businesses. The presenters will also describe certain steps that can be taken to avoid or to remedy these governance mistakes in a practical manner. Finally, the presentation will explain how advance planning with clients can promote better compliance with the applicable governance rules for a closely held business entity.
Recorded on Day One of the Business Law Institute in November 2021.