family managed business

1. Family Business
Presented by: Akshay
Bansal, Chetan Khandelwal &
Amir Malik
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2. Introduction
• One or more members/families
• Garner more than 20% of the
voting rights
• Brothers and sisters
• Ideas & commitment
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3. Family business documents
Articles of Association
Shareholder’s
agreement
Distribution policies
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4. Advantages
• Costs less • Own boss • Confidentiality
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5. Disadvantages
• Break relationship
• Pressures & overloads
• Discrimination between
employees and family
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7. Comprehensive plan
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8. Three circle model of Family
Business
Family
1
6
3
7
5
2
Business
Ownership
4
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9. Steps of drafting a family
constitution
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10. Steps of drafting a family
constitution
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11. Factors that lead the companies for
a family business
• Success planning
• Informality
• Emotions
• Training
• Exit strategy
• Vision
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12. Similarities in family constitution
• Conflict resolution strategies are decided
• Voting rights and family representation is
decided
• Business make a family council which
decides the ways of staying together
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13. Differences in family constitution
• Different takes on women representation
• Different voting rights in different firms
• Way of operating of family council is
different
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14. Different types of shares
• Non voting ordinary rights
• Preference shares
• Preference shares which are redeemable
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15. Reliance
• Dhirubhai Ambani’s death
• Conflicts
• Business separation
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16. Escorts
• Diversify into telecom and
healthcare
• Policies forced to sell telecom
• Healthcare – Fortis
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17. Conclusion
• Conflicts
• Understanding
• Reliable professionals
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18. Thank You
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