Conservas Díaz S.A. (Portuguese version, Portugal)

Description

Antonio Díaz, the director of the family-owned business Conservas Díaz S.A., had worked hard to make the firm one of the leading canning companies in the country. The excellent family management contrasted with the lax attitude toward family-company relations. When Conservas Díaz S.A. was taken over by the second generation of owners, it suffered a serious setback when one of the shareholders announced he would be selling his shares in the company.

Learning Objective

The case study examines the reasons behind this sudden decision, how the change in shareholders affects the family business and the possible financial solutions to the shareholder's departure from the family firm. The mechanisms that might have prevented this unfortunate outcome for Conservas Díaz are analyzed. Other points discussed include the lack of effectiveness of the Board of Directors and the fact that the company has no family advisory board to handle the needs of shareholders.

Keywords

Board of Directors Capital structure Communication Family Family-owned Business Interpersonal relations Management styles