A great involvement of stakeholders requires more openness, transparency and control at the same time. These aspects often conflict with the traditional contained family businesses. Especially with larger family businesses, there is profound restraint in providing financial data, in order to protect the interests of the family.
As a result, family businesses often have no external Supervisory Board to control management Supervision in a family business is still preferably left to its own family relatives rather than an independent body even though professional supervision today also has become a necessity to family business. It not only helps the organization stay focused, but the companies herewith are also responding to the public demand for greater transparency and control. Additionally, it ensures that the company is treated in society as a mature and professional organization in contact with the outside business dynamics.
Therefore, it is important to find a good balance in the existing governance, addressing both family values and the interests of the stakeholders. For the selection of supervisors, the whole set of requirements must be taken into account.
Clifton Finance has extensive experience in determining governance structure while maintaining the family values. We analyse the desired end goals taking family needs into account including the needs of the next generation, so that the governance for long-term is set up.