A Place in the Family: Corporate Governance Practices in Family Firms

Abstract

Adeline Ong is the new Independent Director of Lim Palm Co., a family business listed at the Singapore Exchange. During her second meeting the board approves an important strategic decision on an acquisition. Adeline realizes that input from independent directors does not seem welcome and that the board does not adequately fulfil its role. Rather, the company’s governance systems are shaped by family dynamics and hierarchies. Unable to contribute constructively in the existing situation, Adeline wonders whether she can add value to the Lim Group as an independent director, and if so, how.