28. Optimal Board, Decision-Making Processes and Shareholder Involvement

Family businesses evolve from generation to generation in terms of their characteristics, which also has an impact on the adequate design of the supervisory function in each case (Gersick et al., 1997). In truth, however, we know that each case is somehow very specific, with individual processes, organisations and people holding the supervisory role (Kormann & Suberg, 2021, p. V). We have seen and heard many things over the years: boards of directors that only rattle off formalisms for the sake of appearances, family strangers who bring in their own agenda, a lack of qualifications or diversity—and optimally organised governing bodies that help management and ownership achieve top performance. Many companies in Germany have always worked in the classic, dualistic model over the years. Here is the conclusion of one CFO: ‘A few years ago we also discussed the idea of a monistic system with our owners, but then rejected it. It didn’t fit into our structure’.