Corporate governance in family businesses
It is important since the overlap between family and work presents challenges that are absent in non-family firms, says YEOH OON JIN
CORPORATE governance is now an accepted necessity in all businesses. It helps to ensure that there is accountability to stakeholders and sustainability in the business.
Good corporate governance practices are equally, if not even more, important for family businesses, since the overlap between family life and work life, and the rigidity of the family hierarchy, present challenges that are absent in non-family firms.
For some family firms, the irrational fear of losing control can be the main obstacle to the adoption of improved corporate governance practices. However, good governance principles can be of great help to family firms in dealing with two particular threats to their growth and continuity: internal conflicts and succession.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Singapore stocks end lower even as regional markets rally; STI slips 0.1%
New Thai finance minister downplays row with central bank
South-east Asia increasingly used for illicit money flows, terrorist financing: US Treasury official
Apac finance M&A to stay subdued after Q1 decline as uncertainties linger: S&P Global
Japan's Nikkei closes at 3-week high on US rate-cut outlook, tech boost
Philippines’ PLDT in talks to sell up to 49% of data centre business to Japan’s NTT