The first generation entrepreneur builds the enterprise, but things get complex at succession due to palace intrigues and infighting among family members
Last week, we have seen an ugly brawl between Singh brothers. Malvinder Singh claimed in a video circulated on WhatsApp that his younger brother Shivinder Singh physically assaulted him at the office of an investment company jointly owned by the brothers.
"He hurt me. He injured me here. He broke this button and he gave me bruise here. He kept threatening me. And, he refused to budge until the team here came and separated him from me,” Malvinder said in the video.
Shivinder in a response to the charges of his brother, said he had to intervene as Malvinder and his relative, who is on the board of their investment company, have been intimidating another director at the Extra-ordinary General Meeting (EGM) and tried to even coerce some employees to video record statements under duress.
"Malvinder attempted to forcibly restrain me and pinned me to the wall choking me. I tried to push him away in self-defence,” Shivinder said in a media statement, adding: "The latest incident closes all options for any possible solution [for Singh brothers] to work together."
Shivinder in an interview to the Economic Times said his elder brother demanded Rs 1,000 crore for an amicable separation. The brothers have lost management control over Fortis and Religare, and been battling court cases against Japanese drug major Daiichi Sankyo, which is trying to enforce a Rs 3,500 crore arbitration award it received from a tribunal in Singapore.
Family power struggles and physical assaultsTo be sure, the incident of Singh brothers getting physical isn't an isolated one.
Some years back the power struggle at Sanghi group between four brothers led to physical assaults at the company's Annual General Meeting (AGM) in front of shareholders. The Sanghi group is into cement, polyesters and media.
There are whispers about an ugly duel between brothers at a conglomerate.
Several such incidents happen in corporate India, but very few come out in the open.
Indian corporate landscape is dominated by family owned enterprises. Family enterprises generated much of the wealth in Indian stock markets.
The first generation entrepreneur builds the enterprise, but things get complex at succession due to palace intrigues and infighting among family members.
Lack of succession planning also makes things complicated and have an impact on performance of companies. Many groups now have started creating trust structures for effective transition through a succession plan, better tax efficiency and shield companies from feuds within the family.
