The need of correct family governance in family business

Abstract

Over and beyond a correct system of governance for the business, the family firm needs the proprietary family to have a good system of family governance. In this way, the family company can achieve its principal competitive advantages: shareholder stability, through the unity of family stakeholders and their commitment to the firm; and the long-term vision that enables the transmission of the legacy of the family firm to successive generations. The article introduces basic concepts and practical reflexions in order to help design an adequate system of family governance.