Australian business owners need to be more proactive about succession and estate planning, AMP Capital reveals.
According to the wealth management company's Corporate Governance Report for 2013, succession planning can have numerous benefits, such as boosting the quality of leadership in your business, allowing you to "capitalise on emerging opportunities" and helping you overcome challenges in both the short and long term.
AMP Capital Corporate Governance Manager Karin Halliday said in a March 10 statement that Australian business owners who make succession planning a priority are better equipped to make important decisions about investments.
She added that it's vital for shareholders to take "an active interest" in this area, too, and encourage senior managers and those on boards of directors to give succession planning serious thought - sooner rather than later.
"A board needs to know where a company is heading and whether they have the right management in place to take them there. Shareholders play a valuable role in engaging with boards and shining a light on such issues," explained Ms Halliday.
"Simply asking directors about governance issues such as succession planning elevates the importance of these topics and encourages directors to address them."
If you need advice on succession and estate planning, get in touch with Craddock Murray Neumann today.