Often the most neglected form of governance in family firms, ownership boards can bring together family shareholders for the highest level of strategic planning. Constituting an effective board of directors or advisory board will convert a rubber-stamp board into a powerful tool for future planning and growth.

The most effective boards represent all owners, meet regularly (i.e., quarterly) and limit membership to those who can significantly enhance the firm's value. Effective boards usually include at least two outside (non-family, non-employee) board members with executive experience at firms with revenues equal to or greater than the firm whose board they sit on.

A number of family firms find it equally effective to constitute an Advisory Board, thereby avoiding the need to acquire Officer and Board Member liability insurance.