{"id":10517,"date":"2026-10-14T02:31:10","date_gmt":"2026-10-14T02:31:10","guid":{"rendered":"https:\/\/tat.capital\/?p=10517"},"modified":"2026-10-14T02:31:48","modified_gmt":"2026-10-14T02:31:48","slug":"governing-the-family-enterprise-lessons-from-india-and-australia","status":"publish","type":"post","link":"https:\/\/tat.capital\/?p=10517","title":{"rendered":"Governing the family enterprise: lessons from India and Australia"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Untitled-design6-1024x576.png\" alt=\"\" class=\"wp-image-10518\" srcset=\"https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Untitled-design6-1024x576.png 1024w, https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Untitled-design6-300x169.png 300w, https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Untitled-design6-768x432.png 768w, https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Untitled-design6-1536x864.png 1536w, https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Untitled-design6.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Two countries, one problem: how India and Australia keep family businesses alive<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">India writes hard rules. Australia builds capability. The smartest families borrow from both.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Most family businesses do not fail because the business fails.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They fail because the family and the business were never separated. Roughly 30% reach the second generation and only about 12% reach the third.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"767\" height=\"157\" src=\"https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-14-074614.png\" alt=\"\" class=\"wp-image-10519\" srcset=\"https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-14-074614.png 767w, https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-14-074614-300x61.png 300w\" sizes=\"(max-width: 767px) 100vw, 767px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The fix: two systems, not one<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A family enterprise runs a <strong>family system<\/strong> (harmony, trust, legacy) and a <strong>business system<\/strong> (profit, risk, execution). Ordinary corporate governance only covers the second.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So the best families build a parallel structure on the family side:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Family Assembly:<\/strong> everyone, once or twice a year<\/li>\n\n\n\n<li><strong>Family Council:<\/strong> 5 to 9 elected members who set policy and settle disputes<\/li>\n\n\n\n<li><strong>Family Constitution:<\/strong> the written rules on values, employment, share transfers and succession<\/li>\n\n\n\n<li><strong>Family Office:<\/strong> professionals who run the wealth, outside the operating business<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">On the business side: a board of 5 to 9 with an independent majority and the CEO as the only executive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>India: write the rules down<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Indian promoter families tend to be old, large and public, so they govern with firm rules.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dabur (the Burman family)<\/strong> has barred family members from executive roles since 1998. No executive salary, no corporate office. Each branch gets one board seat, and father-son or sibling pairs may not sit together.<\/li>\n\n\n\n<li><strong>Burman Family Holdings<\/strong> recycles about 50% of Dabur dividends into new consumer ventures, so ambitious heirs build businesses instead of competing for jobs.<\/li>\n\n\n\n<li><strong>Godrej<\/strong> takes a different path: a hybrid where family members hold executive roles (8 of its 16 family council members), under non-family CEOs, six independent directors and a formal code of conduct.<\/li>\n\n\n\n<li><strong>The law helps.<\/strong> Listed companies must have independent directors (one-third of the board, or one-half where the chair is promoter-related) plus audit, remuneration and risk committees.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Even good governance did not keep Godrej in one piece. In 2024 the group realigned into two branches. But it did so by contract, with a non-compete and shared brand, not by court.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Australia: build the capability<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Australia has less prescription and more preparation. There is no inheritance tax, no dedicated family-office law, and a looser, &#8220;if not, why not&#8221; governance code. The pressure is succession: about A$3.5 trillion is expected to change hands, and 72% of family enterprises say succession planning is a challenge.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Macadamias Australia<\/strong> set up a family council, constitution and policies in 2016, added an external chair and director in 2017, and later ran a major asset sale to PSP with that structure already in place.<\/li>\n\n\n\n<li><strong>Plarre Foods<\/strong>, now in its fourth generation, makes family members work outside the business for at least two years, and puts CEO hopefuls through the same selection process as outsiders.<\/li>\n\n\n\n<li><strong>Mutual Trust<\/strong> runs a multi-family office with 220+ specialists and, since 2024, a Rising Gen Leadership programme with Melbourne Business School: workshops, masterclasses, coaching and a peer network.<\/li>\n\n\n\n<li><strong>Watch the details.<\/strong> Trust-tax rules, family-provision claims against wills and foreign-ownership screening all shape how families structure wealth.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Plarre&#8217;s chair warns of a &#8220;pretence of governance&#8221;: bodies on paper, no discipline in practice.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"761\" height=\"334\" src=\"https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-14-075009.png\" alt=\"\" class=\"wp-image-10520\" srcset=\"https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-14-075009.png 761w, https:\/\/tat.capital\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-14-075009-300x132.png 300w\" sizes=\"(max-width: 761px) 100vw, 761px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Five takeaways for cross-border families<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1.&nbsp;&nbsp;&nbsp;&nbsp; Write the constitution before the dispute.<\/strong> Formal (Dabur) or principle-led (Godrej, Plarre), but written.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2.&nbsp;&nbsp;&nbsp;&nbsp; Mix India&#8217;s rules with Australia&#8217;s preparation.<\/strong> Hard limits where conflict risk is highest; education and coaching so heirs become capable owners.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3.&nbsp;&nbsp;&nbsp;&nbsp; Set your board standard at the stricter of the two regimes.<\/strong> Indian law fixes a floor; Australian practice is voluntary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4.&nbsp;&nbsp;&nbsp;&nbsp; Plan for an orderly split.<\/strong> Branch separation can be a successful outcome if the agreements anticipate it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>5.&nbsp;&nbsp;&nbsp;&nbsp; One constitution, two compliance maps.<\/strong> Outbound Indian remittance limits and anti-avoidance rules sit beside Australian trust-tax and foreign-investment screening. Get advice early.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/zfrmz.com\/RBzEoHkGo2u16yURZI5O?article=Governing_the_family_enterprise\">Download Full Report<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Two countries, one problem: how India and Australia keep family businesses alive India writes hard rules. Australia builds capability. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10518,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[32,13,33,9,70,68,1],"tags":[37,44,39],"class_list":["post-10517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australia","category-family-office","category-india","category-insights","category-region-wise","category-solution-wise","category-uncategorized","tag-australia","tag-family-office","tag-india"],"_links":{"self":[{"href":"https:\/\/tat.capital\/index.php?rest_route=\/wp\/v2\/posts\/10517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tat.capital\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tat.capital\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tat.capital\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tat.capital\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10517"}],"version-history":[{"count":1,"href":"https:\/\/tat.capital\/index.php?rest_route=\/wp\/v2\/posts\/10517\/revisions"}],"predecessor-version":[{"id":10521,"href":"https:\/\/tat.capital\/index.php?rest_route=\/wp\/v2\/posts\/10517\/revisions\/10521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tat.capital\/index.php?rest_route=\/wp\/v2\/media\/10518"}],"wp:attachment":[{"href":"https:\/\/tat.capital\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tat.capital\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tat.capital\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}