Importance of Family Governance Structure in Lee Kum Kee Co. Ltd
Added on -2019-09-16
The article discusses the importance of family governance structure in Lee Kum Kee Co. Ltd and how it helps in managing generations of family and allotting specific working profiles to every member. It also highlights the reasons for introducing family governance structures and how it helps in solving complex circumstances and inappropriate issues. The article also talks about the council that was planned to manage the large family, increment in business and development in specific investment interests.
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Question 1The LEE KUM KEE CO. LTD (LKK) is identified as one of the leading company with a verylarge partnership of the family members. To manage generations of family and to allot thespecific working profile to every member, the family governance structure is prepared. Firstly,the equal shares to the four brothers (i.e. Eddy Lee, David Lee, Sammy Lee and David Lee) aredistributed by the father, Man Tat. All the major decisions are also planned by the four brothersand father. But regarding the daughter Elizabeth, the situation related to the allotment of shares isnot clear. So, Man Tat decided that the corporate governance system should be re-examined andmanaged in a definite manner with some changes and areas of improvement. Some of thespecific reasons to introduce the family governance structures are defined below in a specificmanner.The major reason is the equal distribution of the shares between the four brothers andsisters.To set the definite rules, governance is identified. By this governance, entry to theoutsiders are also provided. By this, the decision making system can also getstrengthened in a structured manner.The expansion of the plans and management of future perspectives can also be managedby planning the governance.The governance also helps in solving the issues related to the complex circumstances andthe inappropriate issues. These aspects can also be solved by hiring executives from thedifferent backgrounds and with different approaches [ CITATION The1512 \l 1033 ].2
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