Scott Family Enterprises (A): Defining Fair Process for Cousin Owners

A large family business in banking and ranching is shifting leadership to the next generation and has developed a protocol to select board members by consensus. However, when the selection occurs, it is not made in accordance with the protocol, and a third-generation family member questions why the selection rules were changed by second-generation members without input or vote. Highlights the growing pains of developing fair processes and guidelines for nominating and selecting board members, meeting family expectations, communicating with constituents, and encouraging active roles in governance at the cousin-stage of a family business.