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Corporate Governance in Family Businesses

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Corporate Governance
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Rodrigues
Professor, Portugal

Corporate Governance in Family Businesses

Governance problems in a family business are complex. As the firm grows, conflicts of interest between branches worsen, businesses become potentially more complex and more varied, and information asymmetrics become more pronounced.
This means that family businesses need sophisticated and vigilant governance mechanisms like any other company does.
 

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1
Jaap de Jonge
Editor, Netherlands
 

Corporate Governance in Family Businesses

Thanks for starting this interesting subject.
What are in your experience the main points of difference between corporate governance in large firms and governance in family businesses?

 
3
Anonymous
 

I've Seen it Up Close

Well, I have personal experience with governance in a family businesses in an earlier job as Managing Director & CEO for a medium sized company, where the entrepreneur and his family owned the majority of the share. The owner was not involved in the operations officially. However, he was looming around the factory and giving instructions that many times were contradicting to those the operative management had given.
On top of that, in corporate governance the Board of Directors were setup of Ya-sayers and had had the same people for 20 years. No strategic changes presented by the operative management were accepted, while some disastrous investments were made and brought to the board for rubber stamping, once they were already done. I left that position...

 
3
Sam Cookey Jr
CEO, Nigeria
 

Family Dynamics in Governance

The separation of ownership from management is fundamental to governance success: but more challengi... Sign up

 
1
Mohammad Hamdan
Russian Federation
 

Complying to the Principles of Corporate Governance in Family Companies

In family-controlled companies, the risk of expropriating wealth from minority shareholders is highe... Sign up

 
0
Jaap de Jonge
Editor, Netherlands
 

Corporate Governance in Family Businesses

In public companies, the many owners are predominantly anonymous stockholders with limited influence... Sign up

 

More on Corporate Governance:
Summary
Discussion Topics
topic Internal and External Corporate Governance
topic Agency Theory: Principal-Agent Problems
topic Corporate Governance: One-tier versus Two-tier Boards
topic Dealing with non-profit Board of Directors
🔥 CEO Duality
topic Europe Reaches Agreement on Banking Supervisor: Curse or Blessing?
topic Corporate Culture Vis-a-vis Societal Culture
topic HR Involvement in CG
topic How to Evaluate and Measure the Effectiveness of Corporate Governance Systems?
topic Corporate Governance and Strategy
👀Corporate Governance in Family Businesses
topic Governance in Public Sector Organisations
topic How Corporate Governance Affects the Financial Performance of Companies
topic Challenges in Corporate Governance in Africa
topic Why the Interest in Corporate Governance Today?
topic Corporate Governance Aims
topic Culture and Corporate Governance
topic Gender Diversity (Women) in the Board of Directors
topic A Global Corporate Governance Body is Needed
topic Corporate Governance Rules and Ethics
topic Why Should a Firm have Procedures and Policies?
topic Governance versus Management
topic Maintaining Creativity and Flexibility Despite of Corporate Governance Mechanisms
topic Corporate Governance and Compliance
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More on Corporate Governance:
Summary
Discussion Topics
topic Internal and External Corporate Governance
topic Agency Theory: Principal-Agent Problems
topic Corporate Governance: One-tier versus Two-tier Boards
topic Dealing with non-profit Board of Directors
🔥 CEO Duality
topic Europe Reaches Agreement on Banking Supervisor: Curse or Blessing?
topic Corporate Culture Vis-a-vis Societal Culture
topic HR Involvement in CG
topic How to Evaluate and Measure the Effectiveness of Corporate Governance Systems?
topic Corporate Governance and Strategy
👀Corporate Governance in Family Businesses
topic Governance in Public Sector Organisations
topic How Corporate Governance Affects the Financial Performance of Companies
topic Challenges in Corporate Governance in Africa
topic Why the Interest in Corporate Governance Today?
topic Corporate Governance Aims
topic Culture and Corporate Governance
topic Gender Diversity (Women) in the Board of Directors
topic A Global Corporate Governance Body is Needed
topic Corporate Governance Rules and Ethics
topic Why Should a Firm have Procedures and Policies?
topic Governance versus Management
topic Maintaining Creativity and Flexibility Despite of Corporate Governance Mechanisms
topic Corporate Governance and Compliance
Special Interest Group

SIG Leader

Do you know a lot about Corporate Governance? Become our SIG Leader

Knowledge Center

Corporate Governance
Knowledge Center



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