Lack of robust governance in family businesses may lead to their natural death – Malta Chamber of Commerce

Last Updated on Thursday, 23 May, 2024 at 9:38 am by Andre Camilleri

Lack of good governance in family businesses may lead to their natural death, a survey which was carried out by the Malta Chamber of Commerce shows.

The full results of the survey are expected to be announced publicly today in a conference organised by the chamber.

From the intricacies of governance to the strategic foresight required for effective planning, this event will feature a series of interventions and a panel discussion emphasising the significance of professional conduct within family enterprises.  This poll also covers the following topics: policy-making, succession planning, training, governance, and family business priorities.

The 2024 survey found that 19% of family businesses with no board of directors did not have a written strategic plan, believing that they didn’t need one, whilst 66% said that “[they] need to get there”.

Meanwhile, of family businesses which did have a board of directors, though lacking at least one independent director, 19% were found to believe that they didn’t need a written strategic plan and 46% believe they “need to get there”.

This contrasts with those boards with a minimum of one independent director. In this case, only 3% believed they didn’t need a written strategic plan and 45% were working towards one. The remaining 52% had a written strategic plan.

The survey showed that these 52% were in line with the principles of good corporate governance, structure systems and policies.

Forty eight per cent of businesses with boards including independent directors had a written succession plan; 34% of those whose directors are only family members have this plan; and 30% of businesses without a board of directors have it.

- Advertisement -
Previous articleHili Ventures to hit €1 billion in revenue in 2024
In 1994, the Malta Business Weekly became the first newspaper fully dedicated to business. Today this newspaper is a leader in business and financial news. Together with the launch of the MBW newspaper, the company started organising various business breakfasts to discuss various current issues that were targeting the business community in Malta.