Family members who work and Family members who don't work inside the family business

Interests of the family members working inside the family business may differ and very often differ from those of the members who don’t work inside the family business.

The following are just a few examples of possible interests of family members who work inside 
the family business:

- to consolidate over time their own economic and decision-making power;

- to maximize their own remuneration;

- to keep the strictest control over corporate assets and financial resources;

- to avoid the distribution of dividends also to pursue corporate self-financing;

- to keep the highest degree of stability in the controlling voting share of family members by the means of constrains to the circulation of participation rights in the family business;

- to keep to a minimum the information about activities of the family business;

- to avoid as far as possible the control by family members who don’t work inside the family business;

The following are just a few examples of possible interests of family members who DO NOT work inside the family business:

- to receive a regular and fair dividend, proportionate to the results achieved by the family business, to its capital and to the degree of business risk burdened by family members;

- possibility of immediate liquidation of the participation rights in the family business at fair value;

- absence of any restriction and/or constrain to the free circulation of participation rights;

- effective and efficient control over the activities performed by the family members who work inside the family business;

- easy access to the information related to the family business.

Comments

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