Family Business constitutes world’s oldest and most dominant form of business organization.
Family Businesses range from small and medium sized companies to large conglomerates that operate in multiple industries and countries.
A family business refers to a company where the voting majority is in the hands of the controlling family including the founder(s) who intend to pass the business on to their descendants.
It has been the aim of this committee to prepare independent recommendations that would assist family
firms in actively developing their own well-functioning corporate governance. This recommendation utilise
the unique characteristics of family firms in the best possible way to benefit the needs of both the owners
and the company.
Publicly quoted family firms should follow the corporate governance codes for enlisted companies in
Finland specified by the Securities Market Association. These codes guide publicly quoted companies to
govern business in a legitimate and transparent manner. Even the largest unlisted family firms follow in
many ways the codes for publicly quoted companies. For unlisted companies, the Central Chamber of
Commerce has published a toolkit for developing their corporate governance
The success of family firms is dependent on their owners. Owners who are unanimous about the direction
and means for developing their firm, and who select the best representatives from among themselves and
external professionals to the firm’s administration, are able to run profitable and successful family business.
Controversies, uncertainties, and diverse expectations among the owners will dissociate and weaken the
business, family and ownership. Good corporate governance offers a clear, concrete tool to commit all
stakeholders of the firm and to ensure their responsibility in their own activities. Majority owners who are
capable and active are undisputed resources for family firms, though supportive and reliable minority
owners are also crucial for the existence and continuity of family firms.
Family businesses range from small and medium-sized companies to large conglomerates that operate in
multiple industries and countries .Some of the well-known family businesses include: Salvatore Ferragamo,
Benetton, and Fiat Group in Italy; L’Oreal, Carrefour Group, LVMH, and Michelin in France; Samsung,
Hyundai Motor, and LG Group in South Korea; BMW, and Siemens in Germany; Kikkoman, and Ito-
Yokado in Japan; and finally Ford Motors Co, and Wal-Mart Stores in the United States.
We provide a wide range of specialized advisory services designed to help strengthen companies by improving corporate governance.
Our renowned coaching programs will allow you to:
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- Automate your business, so you can leave for days, weeks, or even months at a time