THE BROAD VIEW
Family businesses fail when members overstep their roles
The lines between shareholder, director and executive must be clear
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FAMILY businesses seldom fail because of market competition, inflation pressures or a lack of opportunities. More often, it is because ownership, governance and management become blurred.
As many Asian family enterprises transition from founder-led businesses to second and third-generation control, understanding the distinctions between shareholders, directors and executives is no longer a governance formality. It is a business imperative.
This confusion may appear harmless at first.
