Corporate Governance in Family Businesses

Corporate Governance
Knowledge Center


Next Topic

Corporate Governance > Best Practices

Rodrigues, Professor, Portugal
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. (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in

  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?


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...

  Sam Cookey Jr, Consultant, Nigeria

Family Dynamics in Governance

The separation of ownership from management is fun (...)

  Mohammad Hamdan, Russian Federation

Complying to the Principles of Corporate Governance in Family Companies

In family-controlled companies, the risk of exprop (...)

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

Are you an expert in Corporate Governance? Sign up for free

Corporate Governance
Knowledge Center


Next Topic

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.6 - Last updated: 26-10-2020. All names of their owners.