Due to its huge land assets and poor business performance of existing family members, Datong has attracted foreign aggression and lost its management rights.

(Photo by reporter Jin Changling)

Reporter Yang Yamin / special report

The Longbang Group, which was originally an ally, has already controlled more than half of Taishan's shares, and the management rights may fall into the hands of non-Zhan family members.

(taken from Taishan website)

Taiwan's business families compete for property and management rights are staged every year, especially for old companies that have been passed down to the second and third generations. As the children and grandchildren spread out, the shareholding is too scattered and the interests of family members are unequal Disputes over management rights have ignited, and there are even some companies that once dominated the shopping malls. Due to family strife and poor company operations, they have attracted foreign troubles and lost their management rights.

Every year on the eve of the shareholders' meeting, when you open the newspaper, you can often see the words "dispute for management rights", such as the dispute between Zhang's elder brother Pai and his younger brother Pai in the Evergreen Group, the dispute between the father and the son of TECO (1504), the tire manufacturer Zhengxin ( 2105)'s brother-in-law and brother-in-law's dispute over management rights.

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Poor business performance of family members has attracted foreign aggression and taken away the management rights

There are also major locomotive manufacturers such as Sanyang (2206), Taifeng (2102), and Datong (2371) because of their huge land assets, the existing family members have poor operating performance, and foreign aggressors have taken over their management rights.

The most popular target this year is the dispute over the management rights between Taishan (1218) and Longbang (2514), an old food factory. It was originally just a dispute between the third generation cousins ​​of the family. Over 70 years of management rights may be taken away by outsiders

According to the "Key Report on Chinese Family Businesses" issued by the Taiwan Institute of Directors, among Taiwan's listed counter companies, family businesses account for 70% of the total. The age continues to grow, and people generally face the problem of second and third generation succession.

Qinye Zhongxin United Accounting Firm stated that in the past 10 years or so, Taiwan’s family disputes have not stopped, and most of them are family enterprises with relatively dispersed equity. , the importance of preventing the family from falling apart or the right to operate the business from falling into the hands of outsiders.

Formulating a family constitution Lee Kum Kee to quell family disputes

Among the Chinese family businesses, the Hong Kong Sauce Group - Lee Kum Kee, after experiencing two bloody and tearful family disputes, formulated a family constitution as the highest adjudication mechanism for family disputes, which calmed down family disputes and doubled its business performance.

In Europe and the United States, it is becoming more and more popular for family businesses to establish family offices as a way of family inheritance. Rich families including Bill Gates and Google founder Brin all use family offices as professional management institutions for family wealth.

However, the "Family Business Family Governance Survey" released by Ernst & Young found that only 9.8% of Taiwanese family businesses interviewed had equity transfer restrictions, and only 2.7% of interviewed family businesses had a family charter.

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