April 15, 2012
FINA 5190 – Lee Kum Kee
1.) What is the role of Elizabeth in ownership, management and family council? Is this arrangement fair? Elizabeth was left out of the initial share distribution of LKK shares and refused shares when offered several years later. She does benefit from other trusts. In terms of work/management, it is possible that she is involved as the case references her and her brother David as graduating college simultaneously at a time when the company needed help. Elizabeth is definitely on the family council and heads the family foundation as per the exhibits from company information.
Overall, this arrangement seems to align with the family’s previous decision for the company to only pass along bloodlines without any involvement from in-laws. It would seem that at the very least Elizabeth is fine with this arrangement given that she actually refused shares when offered. To determine if this is fair or not, one would have to know the details of the trusts that she benefits from. If she and her family benefit significantly from those trusts, then this arrangement seems fair. Given her previous refusal of shares in the company, it would seem that Elizabeth is well taken care of.
2.) Is there a role of the offspring of Elizabeth in Lee Kum Kee? Based on the comments and feedback from family members including Elizabeth’s offspring, it would seem that there is a role for her kids in Lee Kum Kee. The fact that her branch of the family is being involved in the family trips and the family education about the company shows that the Elizabeth and her brothers are open to the possibility of Elizabeth’s branch working in the company and are taking the necessary steps to prepare them for this.
3.) How will future ownership and management be determined? “Competence and passion are key: both are needed to succeed in this business.” As per this quote from David, ownership and management of Lee Kum Kee will...
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