BOD - Approval of capital investments, acquisitions, and distributions.
Investment Committee – Search and vetting of investment opportunities.
Managing Director – Responsible for the overall results of the Holding Company and communication with Subsidiary CEOs.
CFO – Responsible for timely, accurate financials and taxes.
COO – Special projects and creation of processes within OpCos and HoldCo.
Audit – Verification of cash in OpCos and processes in accounting departments.
Legal – Legal support for OpCos
Subsidiary CEO – Responsible for results and operation of their OpCo.
As of now my partner and I make up the BOD and Investment Committee of both of our HoldCos. He is the Managing Director of the USA and I am the Managing Director of Panama. We have dedicated CFOs for each company and currently share a COO who works for both HoldCos.
If it is just the two of us in BOD/IC/MD, why have such an elaborate diagram? Why not just lump them together in one line?
Because each of those jobs is different. When we talk, we need to be clear if we are speaking as a Director, an MD, or an Investment Committee member. Each role comes with different responsibilities and different authority.
This structure has evolved a lot over the last 13 years, and it will continue to change. One guiding rule for us is to keep the top structure as lean as possible. Every box in this diagram should be necessary. We want no fluff.