What is a Family Business?
A family business is a commercial organization run and managed by the family members normally related by blood or/and marriage.
What are the causes of Family Business Dispute?
There could be a number of causes of a family business dispute; however, significant of them are:
- Conflict because of Persona Interest: If a family member wants to be a director or other authoritative post, but he/she does not competent to be as other for that post, it may lead to conflict or family business dispute.
- Lack of Interests: If some members are not interested with the kind of business their family is doing; hence want to run some other business or some other profession; it may also lead to family business dispute.
- Competition in the Family Business: Suppose, a family business divided among the brothers; though running by two owners, but the nature of business is same, it may lead to competition and then dispute.
- Conflict of Interest: If a family member wants to sell his/her share; however, the main or authority member wants to keep the company/property, then it may ended up in a dispute.
- Biasness in allocation of Property and Power: If the authority (usually parents or grandparent/s) allocates the power or share in the business in such a way that it is NOT in interests of their children, then it may lead to family business dispute.
- Interference by Third Party: Sometimes, a third party (who is not a family member), who has been given managing power in family business, may also play a game and conspire a family business dispute.
What are the consequences of a Family Business Dispute?
Dispute, in a family, is rarely commence with a big issue, but rather always starts with a small issue; if it is not taken care at earliest, then it can cause different types of damage, such as waste of money, waste of time, loss in business, and loss of family attachment and relationship. On top of this, such kind of dispute also soils business as well as family dignity. You might lose reliability and dignity in the market.
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