Financial Confidence | Business Family Governance
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Business Family Governance

How to Handle Business and Family Matters

Family businesses constitute the world’s oldest and most dominant form of business organizations. In many countries, family businesses represent more than 70 percent of the overall businesses and play a key role in the economy growth and workforce employment.

There are three overlapping areas in all business family organizations:

  • Ownership
  • Business
  • Family

Common Areas of Conflicts

These overlapping ownership, business and family common areas may result in conflict:

  • Family unity
  • Ownership vs. control
  • Shareholders rights and responsibilities
  • Governance
  • Compensation
  • Successor choice
  • Non-family managers
  • Others

Business Family Governance

Business family governance can help you make decisions. There are 4 key groups in business family governance:

  • Board of Directors
  • Board of Advisors
  • Family Council
  • Family Assembly

 

Treating the business family in a more formal and organizational way can feel a bit strange at first. But the value of governance can benefit for both the business and family to achieve overlapping goals.

Business Family Governance

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