Family BusinessPresented by: AkshayBansal, Chetan Khandelwal &Amir Malik1IIPM
Introduction• One or more members/families• Garner more than 20% of thevoting rights• Brothers and sisters• Ideas & commit...
Family business documentsArticles of AssociationShareholder’sagreementDistribution policies3IIPM
Advantages• Costs less • Own boss • Confidentiality4IIPM
Disadvantages• Break relationship• Pressures & overloads• Discrimination betweenemployees and family5IIPM
6IIPM
Comprehensive plan7IIPM
Three circle model of FamilyBusinessFamily163752BusinessOwnership48IIPM
Steps of drafting a familyconstitution9IIPM
Steps of drafting a familyconstitution10IIPM
Factors that lead the companies fora family business• Success planning• Informality• Emotions• Training• Exit strategy• Vi...
Similarities in family constitution• Conflict resolution strategies are decided• Voting rights and family representation i...
Differences in family constitution• Different takes on women representation• Different voting rights in different firms• W...
Different types of shares• Non voting ordinary rights• Preference shares• Preference shares which are redeemable14IIPM
Reliance• Dhirubhai Ambani’s death• Conflicts• Business separation15IIPM
Escorts• Diversify into telecom andhealthcare• Policies forced to sell telecom• Healthcare – Fortis16IIPM
Conclusion• Conflicts• Understanding• Reliable professionals17IIPM
Thank You18IIPM
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Family business (1)

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Family business (1)

  1. 1. Family BusinessPresented by: AkshayBansal, Chetan Khandelwal &Amir Malik1IIPM
  2. 2. Introduction• One or more members/families• Garner more than 20% of thevoting rights• Brothers and sisters• Ideas & commitment2IIPM
  3. 3. Family business documentsArticles of AssociationShareholder’sagreementDistribution policies3IIPM
  4. 4. Advantages• Costs less • Own boss • Confidentiality4IIPM
  5. 5. Disadvantages• Break relationship• Pressures & overloads• Discrimination betweenemployees and family5IIPM
  6. 6. 6IIPM
  7. 7. Comprehensive plan7IIPM
  8. 8. Three circle model of FamilyBusinessFamily163752BusinessOwnership48IIPM
  9. 9. Steps of drafting a familyconstitution9IIPM
  10. 10. Steps of drafting a familyconstitution10IIPM
  11. 11. Factors that lead the companies fora family business• Success planning• Informality• Emotions• Training• Exit strategy• Vision11IIPM
  12. 12. Similarities in family constitution• Conflict resolution strategies are decided• Voting rights and family representation isdecided• Business make a family council whichdecides the ways of staying together12IIPM
  13. 13. Differences in family constitution• Different takes on women representation• Different voting rights in different firms• Way of operating of family council isdifferent13IIPM
  14. 14. Different types of shares• Non voting ordinary rights• Preference shares• Preference shares which are redeemable14IIPM
  15. 15. Reliance• Dhirubhai Ambani’s death• Conflicts• Business separation15IIPM
  16. 16. Escorts• Diversify into telecom andhealthcare• Policies forced to sell telecom• Healthcare – Fortis16IIPM
  17. 17. Conclusion• Conflicts• Understanding• Reliable professionals17IIPM
  18. 18. Thank You18IIPM

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