The past catches up with everyone: legal failures of the previous generation threaten a family firm's future

Jan Klaus Tänzler and Annegret Hauer

Chapter 12 in Case Studies in Family Business, 2024, pp 138-146 from Edward Elgar Publishing

Abstract: The case describes a fifth-generation family-owned supplier to the automotive industry in Germany with 1500 employees, €180 million annual turnover and more than 40 family shareholders. Illegal cartels involving Meyer SE dating back years attracted the attention of the public prosecutor’s office. The subsequent fine caused the firm existential difficulties, especially as it came during a restructuring phase. Thus, the family not only struggled to save the company from failure but had to work through the question of accountability in the family. Direct responsibilities were unclear, and many family members are involved: current CEO, previous CEO and founder of advisory board, non-manager representative of one of the family factions, etc. Due to the family’s strong identification with the firm, family members fear loss of earnings and reputation. The case illustrates how lack of responsibility, illegal activity, and shortcomings in corporate governance processes created conflicts across generations.

Keywords: Business and Management; Economics and Finance (search for similar items in EconPapers)
Date: 2024
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