Family businesses : time to shape up!

Abstract

We have no official statistics that show how many family businesses operate in Malta. What we know is that according to the latest statistics around 98% of businesses in Malta are Small & Medium Enterprises (i.e. employing 250 persons or less). We also know that the vast majority are family owned and/or family run. Presently we have 259 businesses that are registered with the Family Business Office, meaning that they fall within the definition of what constitutes a Family Business according to the Family Business Act (Chapter 565 of the Laws of Malta) The definition of what constitutes a family business in the Family Business Act is rather restrictive, as it is defined as a business that is registered as a Limited Liability Company or Partnership where: a) at least two owners are family members within the same family, b) no single family member holds more than 80% shareholding or interest in the structure, c) at least one family member is formally involved in the general governance, proper administration and management of the business structure. [excerpt]