Ownership versus control : fault lines in director-shareholders relationship - special reference to Malaysian family business
he structure of family business is unique compared to the non-family business as it combines three elements, namely, family relationships, composition of owners and management structure under the name of the business. This distinctive attribute often give rise to governance issues. Under the con...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
UUM Press
2011
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/66555/ http://irep.iium.edu.my/66555/ http://irep.iium.edu.my/66555/12/66555%20OWNERSHIP%20VERSUS%20CONTROL.pdf |
| Summary: | he structure of family business is unique compared to the non-family
business as it combines three elements, namely, family relationships,
composition of owners and management structure under the name of
the business. This distinctive attribute often give rise to governance
issues. Under the conventional concept of corporate governance,
directors should act in the best interest of the shareholders. In doing
so, the directors’ action is governed by certain rules which specify
their duties and these rules are relevant to the shareholders with
respect to their rights. Although there are laws which govern the
relationship between the directors and shareholders, in certain
circumstances there are some latent problems. These hidden
problems can be identifi ed as the fault lines in the relationship
between directors and shareholders. This article discusses the issues
pertaining to fault lines which may arise in a family business due
to the complex and overlapping structure between directors and
shareholders in a family business. Research methodology applied in
this research is mainly doctrinal analysis. |
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