Governance Advice
As your social enterprise grows and develops it is good practice to review your legal structure and governance arrangements every few years. Over time these structures can become outdated and can hamper the further development of your business.
There are several things that can happen (and sometimes several happen together):-
a) The nature of your social enterprise can change and the people who were the key stakeholders several years ago are no longer the driving force in the social enterprise.
b) The way in which you wish to be financed may have changed.
c) Your activities may have changed which lead to moving to a group structure.
d) The law may have changed and your governing document does not allow you to take advantage of such changes.
e) A governance structure designed for a four member business will usually not be suitable for, say, a twenty member business.
f) Bad habits can become custom and practice over time, making the social enterprise’s decision making poor and inefficient.
It is CMS’s experience that in more than half the cases we deal with, the problems facing an existing social enterprise are caused in whole or in part by failings in their legal and governance structures.
Don’t let this happen to you call today for advice…
Tags: Starting a Business
