How to Avoid a “Corporate Kalesh”?

Corporate family disputes, or “kalesh,” remain one of the most significant risks to Indian business continuity, with nearly 91% of listed entities being family-run. While legendary leaders like Warren Buffett and Ratan Tata have demonstrated the value of timely succession planning, Indian corporate history is rife with examples—Ambanis, Birlas, Bajajs—where lack of clarity in succession has eroded value and shaken investor confidence. Key triggers of disputes include blurred lines between ownership and management, complex family dynamics, opaque governance, and delayed succession planning. Legal frameworks such as SEBI Listing Regulations and provisions of the Companies Act, 2013 mandate succession policies and disclosures, yet enforcement challenges remain. Prolonged disputes often harm minority shareholders, disrupt operations, and tarnish reputations. Mitigation lies in proactive steps—drafting family constitutions, involving the next generation (including daughters), appointing independent directors, adopting mediation, succession planning, and drafting wills—to ensure continuity, tax efficiency, and preservation of shareholder value

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