Independent Managers – providing safety amid the fireworks
Posted by Gennine Cooper
July 31, 2019
Bang! Crack! Sizzle! Every year, citizens of the United States celebrate their independence on July 4th with backyard barbeques, pool parties, and, of course, fireworks! With July being all about Independence Day, what better month to discuss Independent Managers and why they are necessary for certain companies.
What is an Independent Manager?
An Independent Manager is someone who is separate from the owners and operators of an entity and who has no financial affiliation with the company. This appointed person typically sits in the background until needed. The independent manager must also be a qualified professional who is able to act with intelligence and in the best interest of the company.
Why do I Need an Independent Manager?
When a bank or lender loans large sums of money an independent manager is often required to ensure the lender’s return on the investment. For instance, if a company is forced to file for bankruptcy, the independent manager steps in to vote on the decision, along with the company’s board members, in the hopes of regaining its financial stability.
Benefits of an Independent Manager
Independent Managers are a benefit to the lenders to ensure their loan is repaid in full; however, they are also beneficial to the company. Having someone who is impartial and objective is an added benefit and can move the company in a favorable direction while still looking out for the well-being of the company and putting the interests of the shareholders first. Additionally, independent managers are qualified professionals and can bring focus and new perspectives to the table. Furthermore, Independent Managers are vital in conflict resolution. Because they do not have personal or financial ties to the company, Independent Managers provide a neutralizing role during times of conflict and can advocate for the best options for a company’s future.
When does the appointment Cease?
When the loan is paid back in full, the need for an Independent Manager ceases.
Incorporating Services, Ltd. as your Independent Manager
Incorporating Services is ready to handle your Independent Manger representation. Because each appointment is a little different (some lenders require two independent managers/springing members), we ask that you contact us and we can provide you a free quote for the service. The best way to reach a representative is to call 800-346-4646 or email at email@example.com and state that you are interested in the service.
Amanda Archambault, Registered Agent Associate