What describes a recommended structure for a private, family-owned-company board?

The recommended structure for a private, family-owned company board emphasizes the importance of independence from the family to help prevent conflicts of interest. Having independent members on the board can bring a fresh perspective and objective judgment, which is crucial for sound governance. Independent directors can challenge family members' viewpoints and decisions, leading to more balanced decision-making that considers the long-term sustainability of the company rather than short-term family interests.

Additionally, independent directors can also enhance the credibility of the board to external stakeholders, such as investors and lenders, by demonstrating that the company is committed to following best practices in governance. By including individuals with no personal ties to the family, the board can reduce potential biases and conflicts that may arise from familial relationships, thereby fostering a more effective and professional governance structure.