Implementation of family governance in a transportation company in the interior of São Paulo

Family businesses exhibit significant mortality rates, with the founder's succession process being crucial for their survival. Unlike publicly traded companies, succession in a family business involves changes in the family, ownership, and business dimensions. The use of governance mechanisms in this process is useful to help separate the roles of each individual and to formalize discussion forums for each of these dimensions. However, due to limited resources, it is often necessary to prioritize the implementation of certain mechanisms. Given this context, the objective of this work was to understand the importance of each family governance mechanism in the succession process. To this end, a case study was conducted in a transportation company that implemented three of the four main family governance mechanisms cited in the literature. Through interviews, document analysis, and based on observations of a board of directors meeting, the perceived importance of each family governance mechanism by shareholders, family members, and employees was evaluated. The executive board and the board of directors were identified as the most important mechanisms, while the shareholders' council and the family council become relevant in certain situations and for specific groups. Therefore, it is recommended to prioritize the implementation of the executive board and the board of directors over the other family governance mechanisms.