Perhaps when you began your business, you believed that the decisions you made would carry it well into the future. However, as time progressed, you began to wonder whether making some changes to your company would increase its efficiency or drive a higher profit. Or perhaps you at the point where you want to consider what will happen to your company when you retire or pass away.
If this sounds familiar to you, then perhaps what you need is a thorough review of the current management structure of your company.
Seek legal counsel whenever you make changes to your businesses
An organizational often involves looking at the duties, actions and roles taken on by each position – whether it is an employee, committee member or board member. Understanding the responsibilities of these roles may help match the appropriate party to the right position. The review can also help outline any risks of making changes, along with ensuring the changes keep the company in compliance with all applicable laws, rules and regulations.
Do you intend for a member of your family to take over the business upon your passing or retirement? You may want to make sure they have the appropriate amount of time, experience and assistance in growing into the role. Creating an outline and timeline of such a transition could help – while ensuring the company remains protected, allowing senior executives to retain control until the time comes and complying with tax and securities laws.
Conducting such a review when you want to make changes to your company may require some outside assistance. Being within the business and close to the potential successor probably does not provide adequate objectivity to make sure everything goes as you intend. In addition, bringing in outside assistance helps ensure your company will remain in adherence to Ontario law.