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.