It is important that every organization – big or small can sustain in the long run only through good governance. Organizations – professionally managed
or otherwise needs ethically sound governance for better rewards, growth and sustenance. Family Managed Businesses (FMBs) are no exceptions with reference to these aspects. In fact, it is all the more important for FMBs to have a governing structure in place, considering the complexities and sensitivities involved in managing family owned businesses. This paper attempts to identify the sensitivity involved in FMBs, complexities in terms of roles and relationships, issues relating to governance and suggesting good governance structure in a typical FMB.
Keywords: Family managed business, Effective governance, Governance structure.