In many family businesses, the main shareholders also serve on the board of directors. It makes sense. They know the company’s history, bring the owners’ perspective, feel personally invested in the business and have a clear interest in its continuity. But being logical doesn’t mean being free of risk. In this article, we’ll examine both […]
Types of shareholders in family-owned firms
Family-owned businesses, especially later-generation firms, are supported by different types of stakeholders: shareholders, investors and owners. There’s a fourth category – speculator – that I’m omitting since it’s not worth mentioning. In my view, there is no wealth creation derived from speculation, which moreover, rarely occurs in family firms. So what are the differences between […]