Does a Privately Held Company Need Corporate Governance?

March 1, 2004

1 Min Read
Does a Privately Held Company Need Corporate Governance?

Originally Published MX March/April 2004

FINANCE

To date, all of the corporate scandals that have received attention from the media, federal and state prosecuting attorneys, and Congress have involved publicly traded companies. The actions and misdeeds of publicly traded companies, which are more heavily regulated than privately held companies, affect more investors and therefore receive more attention.

However, a lack of government regulation or media attention does not mean that privately held businesses should ignore the corporate governance reforms that are affecting the operations of publicly traded companies. Listed below are five reasons why boards of privately held companies need to be concerned with corporate governance.

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