7 Reasons Why Owners and Management Shouldn’t Hold Genealogy Positions and How to Overcome Them
Should company owners and managers hold genealogy positions? Here are seven reasons why it may not be wise:
- The financial benefit for owners to hold a genealogy position is a fallacy.
- Owners holding genealogy positions can inhibit an IPO.
- Minority shareholder rights may be violated.
- You may be unwittingly selling a security.
- Ownership of genealogy positions by owners can lead to an inequitable distribution of income.
- Ownership of genealogy positions can lead to conflicts of interest.
- Termination of a business relationship is made more difficult if management holds a genealogy position.
But the challenges associated with management holding a position in the genealogy can be overcome with proper planning and execution.
So if you are starting an MLM and are considering taking a position in the genealogy, read the latest addition to our MLM Startup Series that discusses these points and how to cope with them in more detail.