Journal of Contemporary Issues in Business and Government

Abstract

Family businesses are the germination locus of all enterprise universally, they
contribute a sizeable quantum of funds to their national exchequer throughout the free world
globally. Their size and gamut are from micro corner shops to large conglomerates like TATA
Empire, Ford, Samsung et al are globally known and recognized. The promoters are invariably
ambitious, having sharp business acumen and profound compatibility with the environment and
competition, the challenge emerges when through efflux of time the original group has to make
way and successors to step in to their shoes, this is more so when there are multiple claimants
and all of them might not have the caliber or inclination. The plausible solution to this enigma
is the topic of this treatise with case studies, some succession are still ongoing process like Cyrus
Mistry versus Tata and Lodha versus Birla, some has lost relevance like nationalization of IISCO
a hangover of an old arcane concept. The new concept of family counsel as prevailing in Dabur
and gradual professional ethos in Tata are interesting, if carefully juxtaposed avoiding mélange
might yield appropriate solutions if not panacea albeit keeping within the realm of the Indian
Corporate Law, ethos and Taxation laws.