CHAPTER 3

Introduction to Governance

“Family firm governance should be grounded on the unique characteristics of family firms” (Mustakillio, Autio, and Zabra 2002, p. 219). Each family is unique, and each business is unique. There is no “one size fits all” when it comes to the governance of a family business. What structure or mechanism to use is dependent upon what is needed and what is best for the family and the business. There are numerous combinations of governance mechanisms that can be used. The decision is usually made by determining what stage the business occupies, how many family members are involved, how large is the business, and its level of complexity.

This book will discuss mechanisms to:

Separate the intertwined functions ...

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