Lack of succession planning fuels family feuds in firms

Boardrooms of companies in India are increasingly becoming battlefields for bitter family feuds, with growing conflicts over wealth fuelled by a persistent reluctance to formalise succession plans.

There is often a mismatch between the mindset of ageing family heads and the aspirations of the next generation. Add in factors such as a lack of equal contribution and commitment among family members, and poor governance, and you have a narrative of chronic family disputes.

There is a growing list of prominent Indian business families embroiled in litigation over control.

Experts blame unclear ownership structures, informal agreements, ageing and frail custodians, and planning delays for these growing disputes.

Most Indian families that have expanded in size and complexity of their businesses have not invested in formal ownership or succession arrangements. When circumstances change and there is no system in place, disputes are hard to avoid.

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