The family corporation

[Alexandoy]

My first job was with a commercial bank that is owned by a family. The ownership of a corporation is represented by the stocks or also called shares of stocks. You can become a part owner if you have shares of stocks. When the corporation is a member of the stock exchange center then you can buy their stocks from there.

A family corporation usually owns at least 51% of the stocks. The controlling group of a corporation is called the board of directors. A maximum 15 directors are voted by the shareholders in the annual election. The directors choose the chairman among them. You can guess that a family corporation would have the family members and relatives in the board to assure them of the control. The board chairman appoints the executive officers starting from the president down to the vice presidents. This goes to show that nepotism is not an issue in a family corporation.

 

[Augusta]

Well, stock generally apart from the family stock is a good investment especially if one is dealing with a viable business with high yielding. I think the family stock is more secure since the family members are the owners and also the share holders they can do well with the business to gain more dividend

 

[Lens1000]

It is evident that the family will withhold a larger shares or stock for themselves and sell the remaining out to many people making sure that no one buys a large share. This is done inorder to maintain the ownership of the corporation. Above 50% of the shares will be reserved for the family. It won't be sold out.

 

[Alexandoy]

It is evident that the family will withhold a larger shares or stock for themselves and sell the remaining out to many people making sure that no one buys a large share. This is done inorder to maintain the ownership of the corporation. Above 50% of the shares will be reserved for the family. It won't be sold out.

It is always 51% that is the magic number because that means you hold the majority shares so you get the position of the chairman and more than half of the directors of the board. You are right that the family will only sell the 51% to a good buyer that means the family is selling the corporation already to the buyer.

 

[Mika]

I have never worked on any company that is fully owned by a family. However, I have had friends who worked in a company owned by a family. The main issue in the company is the lesser qualified family member will be your boss and you will have to follow orders from someone who is not qualified to sit in that position.

 

[Jasmine]

A lot of big businesses around the world are family corporations. Some businesses start as a family company and later allot IPO to become a publicly traded companies. A lot of companies have the owner's family members in the top positions. Companies Gail when they start to employ less qualified family members on the top positions