Governance Structure in Family Businesses

In family businesses, governance structure refers to the framework that guides decision-making and responsibilities among family members and management. It typically includes the family council, which discusses family-related issues; the board of directors, which oversees the business's strategic direction; and management, responsible for daily operations. Clear roles and communication help balance family dynamics and business objectives. This structured approach ensures that the business can grow, maintain professionalism, and address any conflicts while keeping family values at the core. Strong governance supports sustainability across generations and fosters trust among family members.