Governance of UK Family-Owned Companies: Boards, NEDs, Advisory Bodies, Chair, Committees, Family Councils, Trust, Reserved Matters, Codes of Conduct, and Remuneration and Share Incentive Schemes
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Practice notes
Most family-run enterprises are in private hands rather than publicly listed. Consequently, the governance framework designed for quoted companies, such as the UK Corporate Governance Code (UKCG Code) and the FRC Guidance on Board Effectiveness, tends to be of only peripheral relevance to them.
Evolution of the board in a family business
In the typical nascent family venture, the founder entrepreneur usually leads the board, with relatives commonly in supporting positions within the business. That said, even among sizeable, longstanding family firms, boards frequently comprise a family majority, particularly in well-established businesses of significant scale. A central challenge, if the business is to endure and prosper, is shaping a capable board—one that harnesses the owning family’s advantages, recognises and offsets skill gaps, whilst delivering clear and robust strategic direction and diligent oversight. In reality, the board, its make-up and remit must mature in step with the enterprise, reflecting and supporting the company’s development over time and across stages of growth. Indeed, a well-functioning family business board is pivotal in enabling that development and actively facilitating growth for the long term. Observers often note that, for bigger family companies, an optimal board totals roughly seven individuals or thereabouts in practice, including...
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Web page updated on 22/05/2026
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