Family Business and its objective Best interest is to sustain Wealth To leave a legacy behind Prioritize Ownership to Management

t The 3 values of Family run businesses Believe to drive the business by meritocratic Management Family stakeholders in companies, have changed over the period of time Ethical Values that a Family Owned Business must have 1. Integrity 2. Credibility 3. Transparency 4. Fairness 5. Dignity 6. Civic Commitment 7. Responsibility

Characteristics of a healthy family business:

Individuals can manage themselves and relationships with others Family has the ability to resolve conflicts with mutual support and trust Boundaries between work and family are appropriate and respected Knowledge is used wisely and isn't blocked by unresolved relationship problems Communications are open and clear Individuals are flexible and able to use advisors wisely Family has the ability to make decisions and move forward Family is clear about goals and navigates towards the goals Family has good direction and leadership Transitions are managed and marked by rituals Intergenerational boundaries are appropriate and respected

ETHICAL CONSIDERATIONS THAT A FAMILY OWNED BUSINESS NEEDS TO TAKE TOWARDS ITS INVESTORS: The 6Rs are to be taken up. Right Representation Responsibility Recognition Respect Relationship

What gives rise to Family business Risk: Family Conflicts No proper succession plan High federal estate taxes

Financial planners have given a set of advice so that this could overcome: Help or mediate into the family affairs to resolve issues Save taxes Transfer the business to the next generation

 Gone

are those days where trust is even thought of SEBIs Rules are mostly followed by all By following the Indian values of trust, are the investors at a risky end? Ur take on what is better!

THE GOODs:
Long

term Strategies Open Explore blue oceans Strong Communication Links Multi generational succession Long term performers
THE BADs:
Slow

Growth Nepotism Low risk Appetite Government Issues Fragmented Ownership

 Family

disputes No proper succession plan or document left behind Issues relating to ownership Investors insecure Market regulators did not do their duties. Ethical issues related to the investors were a lot Lesson learnt that corporate governance was required in family owned businesses