What is a family business? admin
What is a family business?
The term “family business” as agreed by both the Family Business Network (FBN) and the European Group of Owner-Managed and Family Enterprises (GEEF) is:
Possession of the Firm
The majority of votes are in possession of the natural person(s) who established the firm, in possession of the natural person(s) who has/have acquired the share capital of the firm, or in possession of their spouses, parents, child or children’s direct heirs.
Majority of Votes
The majority of votes may be indirect or direct.
At least one representative of the family or kin is involved in the management or governance of the firm.
Listed companies meet the definition of family enterprise if the person who established or acquired the firm (share capital) or their families or descendants possess 25 per cent of the right to vote mandated by their share capital.