The governance and, more generally, the management of family businesses begins to be recognised as equal and equivalent to corporate governance and plays a central role in the development of family businesses. The average of micro-family businesses in the EU-28 is 93% of all enterprises.<\/p>\n
The family business may be inextricably linked to the vision, fundamental family values, critical decision-making processes, as well as the mechanisms for resolving internal disputes and ensuring the succession of their management, but to move forward and develop in the future they must strengthen confidence in transparency, communication, and decision-making between their members.<\/p>\n
by Thanos S. Chonthrogiannis<\/strong><\/p>\n \u00a9<\/em>The law of intellectual property is prohibited in any way unlawful use\/appropriation of this article, with heavy civil and criminal penalties for the infringer.<\/em><\/p>\n The governance of a family business should be based on four pillars which form the basis of the governance of such enterprises.<\/p>\n 1.<\/strong> The first pillar concerns the identification and imprinting of the fundamental principles and values of the family<\/p>\n The fundamental principles and values of the family, which define the business over time. Such principles and values are e.g., emphasis on modernity, customer-centric perception, focus on quality). In addition, the family should present and communicate to the public the context of the wider activities of the family to highlight family values such as sponsorships, charitable investments, charities, etc.<\/p>\n 2.<\/strong> The second pillar concerns the design and drafting of the Statute of the Family<\/p>\n The purpose of this statute is to define the framework of the rules on several critical issues including issues such as the decision-making and dispute resolution process, dividend policy, the procedure for the participation of family members in the management of the company and their appointment to the board of directors, the process of its withdrawal from the share capital of the company, etc.<\/p>\n 3.<\/strong> The third pillar concerns the formulation and preparation of a formal succession plan.<\/p>\n The Purpose of this is the business to be led to its smooth transition to the next generation through a rational and fair process for the participants. During this transition, the incoming generation should be trained methodically and systematically in the new roles it is about to take on.<\/p>\n