The International
Finance Corporation (IFC) family business governance handbook is a
concise and practical description of essential family business
governance components and suggested approaches to resolving common
family business governance dilemmas.
It is intended to complement
existing tools currently being used within IFC to assess the governance
of family business clients. The Introduction outlines inherent strengths
and weaknesses that define the majority of family businesses, and
analyses challenges faced during the evolution process of a typical
family business through 3 stages: Founder, Sibling Partnership, and
Cousin Confederation.
Section one takes a look at the multiple
overlapping roles often played by individuals in a family business, and
the peculiar challenges that this tendency to wear multiple hats can
pose to family businesses.
Section two explains the necessity of
developing a clear family governance structure as different generations
join the family business, in order to prevent potential conflict and
ensure continuity. This section also presents examples of a family
constitution and a family employment policy from IFC clients.
Section
three discusses the role, structure and composition of the board of
directors in a family business as it grows in size and complexity. It
examines three important elements over time: the Advisory Board, the
Board of Directors, and Independent Directors.
Section four stresses the
extent to which senior management affects the performance of a family
business and its ability to generate wealth. This section compares
family versus non-family managers, and provides basic guidelines for
establishing a sound Chief Executive Officer (CEO) succession plan.
Section five presents advantages and disadvantages that a family
business could experience by going public. There is also a table of
governance best practices that are useful for companies seeking to
project a positive image to the market while planning to go public.
For
more publications on IFC Sustainability please visit....
www.ifc.org/sustainabilitypublications.
FamilyBusinessGovernance Handbook English by Than Han on Scribd
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