‘Family governance’, refers to the structures and processes families use to organise themselves and guide their relationship with their enterprise. When well-designed (and properly implemented), family governance can help set boundaries, create clarity, and result in greater harmony between family members, a more focused business, and easier transitions between generations. However, in order to be effective, family governance must reflect the particular culture, dynamic and objectives of the family in question.
GOVERNANCE CHALLENGES AND RISKS FOR FAMILY BUSINESSES Governance challenges for families in business arise from the intertwining of family and business issues. Family businesses are associated with emotional attachments. Psychological ownership, love, resentment, attachments to the past, promises made and expectations of the future all have a bearing on family businesses. Governance structures aim to separate family issues from business decisions but many issues overlap, such as employment of family members, successor selection and process, retirement, length of tenure, family share ownership, inheritance and trading of shares, next generation education and development.
family business governance system
How often do you hold Board Meetings , Operational Meetings?
In my family business as the board meeting is solely composed by my father, he gathers operational meetings more. Indeed, every month he gathers his advisors to evaluate different strategies.
How are the meetings organized and who attends?
The operational meetings are attended by my uncle, father, his advisors and top management of the company
Are the roles of Chairman and Chief Executive differentiated?
yes, in my family business my grandfather is the chairman and my father is chief executive .
How are the roles of Directors defined?
There is one general director which is my uncle who collaborates with the CEO which is my father.
Do Directors have limited terms of office?
No, in my family business they haven't.
How are family Directors roles defined?
The roles are defined as my uncle is the general director, my sister is head of the HR department , I am in charge of the tender department in our family construction business and my father is the CEO of the company .
Interesting but too descriptive to be of extra value to the community. At masters level @shivam choudhary, you are expected to pose questions rather than fall in to the undergrad routine of Q&A! You are required to demonstrate competences in understanding family business issues as paradoxes, with multiple options for action and intervention, rather than simply problems to solve!