Chinese Prevention Of Family Business Disputes

Just as the tongue and teeth are so close, and when the teeth bite the tongue, the contradiction is inevitable in the development of family businesses. The key lies in how to deal with these contradictions.

Harmony makes money, and initiative divides.

They fight for control over each other. Management Differences of ideas hurt the feelings of the family, rather than a remote world. When some family members start their own business together, when family businesses develop to a certain extent, they adapt naturally. market The active "split".

When other private entrepreneurs were still ignorant of the property rights system, the property rights between the four brothers of the Sichuan hope group were clearly divided overnight. According to " Assets The basic principle of equal sharing is divided into branches. Liu Yongyan, the founder of the mainland, founded the mainland hope company, the second Liu Yonghang (column) established the Orient hope company, the third Chen Yuxin (Liu Yongmei) established Huaxi hope company, and the old four Liu Yonghao (column) established the South hope company. This can be said to be a perfect case of "brotherhood and reckoning" in the history of Chinese enterprises. These companies are now famous in China, and the diversified development of their products is inseparable from the choices made by their brothers to regulate the property rights system.

The same is true of Home Express. In the direction of enterprise development, when founder Chen Ping discovered that his brother Chen Xianbao did not agree on the strategic objectives, he finally chose equity transfer, leaving home express to form a new company, "star morning rush", to expand another world.

When there are many handsome men in the brotherhood, if the separatist is unavoidable, it may be a better choice to choose "split up" voluntarily. Chen Zhao believes that the development time of Chinese family businesses is relatively short, and the issue of equity disputes arising in the process of growth is mainly due to the unclear division of property rights at the source. Nowadays, when the family run private enterprises are founded, many of them will gradually have such consciousness. "Brothers should also clear accounts", which can avoid many contradictions in the future.

Family system grafting modern enterprise system

On the succession of family businesses, Mao Lixiang, the head of Zhejiang FOTILE group, explored a modern family business management system between the traditional family management and the modern management system.

"Pocket theory" is Mao Lixiang's innovation in equity arrangement of family businesses. Mao Lixiang used this theory two times. The first time in 1995, on the basis of flying group, he switched to the investment cabinet industry, and founded his own FOTILE company with his son Mao Zhongqun. And for the flying group to follow its left and behind the hard work of the old subordinates, gave them a "pocket": in the periphery of FOTILE set up six external manufacturers, from their previous adhered to the old subordinate control, the manufacturers and FOTILE only business contacts, no property rights contact.

The second time, he divided his daughter into another pocket. Mao Lixiang's eldest daughter manages the two companies independently, but not in FOTILE. Mao Lixiang believes that brothers and sisters can share shares in a company, but do not put them together to operate, otherwise it will cause hidden dangers for management rights. If the daughter stays in FOTILE, the relationship between the company will become the form of uncle and brother-in-law, brother and sister, nephew and uncle, nephew and aunt, nephew and son, and trouble will follow.

"Some large family businesses can adopt such a way that different children inherit different businesses." Gao Chengde said, but if the business of the family business is small, such a way may not work. He said: "the nature of each enterprise, the industry, the development of family businesses and so on are different, and there is no uniform standard, and we must judge according to the actual situation."

Establishing a healthy mechanism for family consultation

Pan Jie, a lawyer at Ying Ke Shanghai law firm, said that the risk prevention of family businesses is the safety and interests of all members. When there is no dispute, family members can negotiate to solve the problem of prevention. But negotiations need to be based. If there is no clear "rules of game" and "negotiation basis", it will become "fair and fair.

LEE KEE Kee family business, which has passed to the fifth generation, has also had a history of "separation". In order to stop repeating the same mistakes, Lee Kun Kee set up a family communication platform in 2003. In family meetings, family members can communicate with each other on various issues. At the same time, the core members of the family committee will not necessarily enter the board of directors. LEE KEE Kee's future plan is to send family elites into the board of directors to influence and maintain family holdings, and to manage the best elites in the market. According to the provisions of the constitution of Li Kun Kee family, their next generation, the fifth generation, has to go to other companies to exercise before entering the enterprise. After passing fair competition and preferential admission with members of the family, they will have the chance to enter the group.

And some successful family businesses such as Microsoft have broken the explosive force of family enterprises' equity disputes through the form of foundations, bringing excellent family members into the management of equity allocation procedures, and isolating unsuitable family members in the service scope of the foundation. In order to prevent disputes over corporate control, some typical Japanese family businesses, such as SONY, often take precautions and arrange properly at the beginning of their establishment. Taylor and other British family businesses maintain the internal harmony in the family by transferring shares, selecting successors and inheriting them according to their families.

In Pan Jie's view, family members continuously control the ownership of enterprises from generation to generation in line with humanity and family concept, so the loss of competitive vigor and external positive factors are regrettable. China HUAWEI company has split up its original shareholding, increased its capital and shares many times, and granted every qualified employee the right to subscribe for shares and participate in the annual dividend. It is still an open mode that remains dynamic and attractive.