Session 4: Governance structures in FB

Question 1

What is corporate governance?

Answer 1

Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structures specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholder and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs.”

Question 2

There are 2 main objectives with governance in family businesses. Which?

Answer 2

1. Create more inclusivity within each group of the family business system. To select or elect representatives or spokesfaces for each group to facilitate the process of decision-making.
2. Provide each member of each group with an opportunity to express their voice and subsequently increase communication between all members.