Answer to Question #98489 in Management for Mebo

Question

With justifications for family business governance examine the role played by the following in the governance of small family businesses
Family Assembly, family council, family shareholders committee, audit committee

Answer 1

Family assembly is responsible for discussing the direction of the company, having information about what the company does

Family Council is responsible for development of plans and policies that regulate family activity with the business.

Family shareholders committee is responsible for drafting, amending, and implementing the shareholders' agreement for the business.

Audit committee is responsible for over sighting and monitoring, and in carrying out this responsibility, it relies on management, the independent auditor, and advisers they might engage.