Structure and Tools of Family Business Governance

The chapter provides a detailed examination of governance structures and tools within family businesses. It begins by addressing the complexity of defining family businesses, highlighting different interpretations related to family involvement in ownership and management. It examines mechanisms that enhance control in family businesses, such as multiple voting shares, shareholders’ agreements, and business groups. It also examines the phenomenon of interlocking directorates, where shared executive roles across firms can affect competition and governance. The final sections focus on the governance bodies specific to family businesses, such as the family assembly and family council, which play a critical role in maintaining family influence, resolving conflicts, and ensuring continuity of family values and business goals across generations.