There are many types of businesses, and every business is for a purpose, and family-owned business (FOB) is no exception to it. Question arises what is FOB? FOB is a type of business that is owned by a family.

Globally, this is one of the most successful business ownership and management model and many economies depend on it in terms of value generation, contribution to GDP, economic activity and job creation. KPMG has recently released Global Family Business Report 2025 in which nearly 2,700 family businesses across the globe were surveyed. In response to the survey question “Governance is crucial for the growth of a family business because it establishes clear decision-making processes, reduces conflicts and ensures long-term sustainability” the following affirmative responses were received:

Ownership and Management:

Ownership of a FOB and its management are two different things. There could be scenarios where the business is owned by a family but not managed by it. Control can be through operational management roles or through board seats or in some advisory capacity. This can lead to certain complications and challenges where the family has a direct or indirect role in the management and day to day affairs of the company. Our discussion mainly revolves around FOB that are managed/ controlled by the family.

Linking FOB with governance also gets complicated as both the business and family being interconnected must be managed together. There could be multiple scenarios for such complications such as when the business expands, family grows, new generations join, and old generation retires.

For example, a person is senior........

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