In Asia many family owned companies are listed and sadly when it comes to succession, there are numerous instances of dispute, families coming to blows and the 'washing of dirty linen' in public.
Much is driven by money and wealth, greed coming to the fore at the expense of family relationships and it is always sad to see. A lot is written about the succession of management and who should lead these firms going forward and clearly documented policies on appointments, roles and responsibilities can go a long way to manage stakeholder expectations, provide security for everyone involved in the business and to help set a framework to minimise the risks of family squabbles too.
MOST, if not all, cases that have been filed with the Securities and Exchange Commission (SEC) involved family-owned businesses. These cases have divided families, pitting brothers against sisters and vice-versa. In not a few instances, some children have even formed alliances to take over the family business by getting rid of their parents. Ironically, the parents of those children ventured into such business precisely to provide a better future for their children. It is unfortunate and painful enough to witness the loyalty of children shifting away from their parents due to the lure of money and power. It is even more unfortunate when the parents, who started and nurtured the business to grow, lose control of the company’s board of directors.