What is family business?
The family business sector accounts for 70% of all businesses in Australia and includes small, medium and large privately owned businesses across a wide variety of industries.
A family business* is defined as a business where:
- the majority of votes are held by the person who established or acquired the firm (or their spouses, parents, child or child’s direct heirs); and
- at least one representative of the family is involved in the management or administration of the firm.
For family businesses who are listed companies:
- the person who established or acquired the firm (or their families) possess 25% of the right to vote through their share capital and there is at least one family member on the board of the company.
* The businesses may be sole proprietorships, partnerships, corporations, or limited liability companies.