The Research Of J Family Enterprise’s Governance

Since the reform and opening up,the development of family enterprises has become the main component of China’s private economy.Because of modern competitive environment,the governance mode of family enterprises become the key point of the development of family enterprises.In this paper,taking the J family enterprise as the case,through in-depth interviews and questionnaire survey for family members and the managers,we understand and analyze the present situation of J family enterprises’ governance,analyzing the key problems of J family enterprise at present,and the necessity of taking family governance.The J family enterprises has issued the family charter on the basis of the actual situation,clearing the family’s core cultural values,establishing the Family Council and the Personnel and Remuneration Committee.The J family enterprises had set up the venture funds and the fund of family members retirement and rescue,and designing the J family enterprise governance,clearing the family governance and family enterprises governance,under the guidance of the relevant national laws and regulations,improve governance level of J family enterprise governance.Family governance is a complicated systematic project,which requires matching of family’s core cultural values,and supporting of corporate strategy,core values of corporate culture,and the balance of professional managers and family members.The family governance should improve the governance structure of the company under the background of relevant state laws and regulations.The family governance is a long-term process,on one hand,it should consider the balance between the family members and professional managers;on the other hand,it should consider the future of the family,the control power,the family development in the long run.It should be the cohesion and matching between short-term and long-term,and ultimately a win-win among the company,family and professional managers,it is the important means to improve the performance and improvement of management.Family enterprises should pay attention to the following four core issues when they design the family governance:firstly,untangling the family core cultural values;secondly,the family governance mechanism,who is going to exercise the management right of family;thirdly,family governance and decision-making right of enterprises;fourthly,compromising of the development of family and enterprises.