Application of a model of corporate governance in family businesses: a case study of Dragão Elétro Diesel in the northern region of Rio de Janeiro State

• Autor(a) principal: Santos Júnior, Jamilson Machado dos
• Data de Publicação: 2013
• Outros Autores: Holanda, Marcius Pereira da Rocha
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Vértices (Campos dos Goitacazes. Online)
• Texto Completo: https://editoraessentia.iff.edu.br/index.php/vertices/article/view/1809-2667.20130027
• topic: Management; Corporate Governance; Strategy; Gestão; Governança Corporativa; Estratégia

The objective of this paper is to discuss corporate governance practices in family businesses, private equity, and identifying their effects on their management model and the business-family relation. The mechanisms of corporate governance are originally proposed for public companies; however, their practices can minimize agency problems found in family-controlled companies, by establishing rules to govern relations between family, corporate and asset management, as well as the classical separation between ownership and control. The strong presence of family groups and high concentration of ownership among national private equity firms are quite striking. Many of the difficulties faced are common in family organizations; nevertheless, there are no rules and solutions to satisfactorily meet those difficulties. Thus, the empirical work consisted of a case study of Dragão Eletro Diesel, with focus on the benefits and main challenges of corporate governance by the Board, the Family Council and the Steering Committee. These represent integration structures in the three-dimensional model of family-ownership-management.