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Specific Features Governing Family Businesses

Mihaela Braut Filipović orcid id orcid.org/0000-0002-2476-545X ; Pravni fakultet Sveučilišta u Rijeci, Rijeka, Hrvatska


Puni tekst: hrvatski pdf 376 Kb

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Sažetak

Family businesses have an important impact on a country’s economy, and Croatia is no exception. In spite of that, family businesses are not subject to any legal regulation or part of any national classification. Family businesses can be formed as any type of company under the Croatian Companies Act. However, regardless of their form, family businesses have unique features which distinguish them from any other type of business. In these businesses families have the prevailing influence, either through ownership or management. They are mostly long-term oriented and ultimately aim to transfer the business to the next generation within the family. Family tradition and values are embodied in the family business, and they often serve as both the business motto and a way to preserve family identity through generations. Specific dynamics of corporate governance in family businesses stem from the overlapping of family, ownership and business. In order to fully comprehend the governance of family businesses the role of the family in the business must be taken into account. Family governance becomes equally important as business governance, as family cohesion and good family relations become the condition sine qua non for the success of the business. Family governance is in fact a strategy for managing family matters which might have an influence on the family business. However, all measures taken to establish a family strategy are completely voluntary – their establishment depends on the will of family members as well as their conformity with the adopted strategy. Practice clearly shows that if family matters are not coordinated, especially if there are conflicts between the family members or a lack of a common business vision, the company’s future existence is at stake. This article analyses possible instruments for devising a good family strategy, as is the writing of a family constitution and forming special bodies within the company, such as the Family Council and the Family Office. Their only role is to govern different aspects of family needs in order to maintain family cohesion. As Croatian companies face the challenge of transferring a large number of family businesses, these instruments can help preserve family cohesion while ensuring the continuity of the family business.

Ključne riječi

family company / business; corporate governance; family constitution; family council; family office

Hrčak ID:

193109

URI

https://hrcak.srce.hr/193109

Datum izdavanja:

15.1.2018.

Podaci na drugim jezicima: hrvatski

Posjeta: 3.540 *