Issue 2020, v7, S2, 2

The Journal of Corporate Governance,  Insurance, and Risk Management (JCGIRM).2020, Volume 7, Series 2

Corporate Governance Guideline Relevance To Maltese Family Public Interest Companies A Small State Perspective**   

Article Type: Research Paper
Baldacchino, Petera*, Cachia, Karla, Tabone, Norberta, Grima Simona, Bezzina Franka
aUniversity of Malta, Malta bMalta Development Bank, Malta

The objectives of this paper are to investigate the relevance of guidelines on good corporate governance (CG) to family public interest companies (PICs) within the small state of Malta and to recommend how existing guidelines may be improved and tailored for such companies. An explanatory mixed-methods empirical approach is adopted with a structured questionnaire being first administered to 17 respondents in 12 PICs owned by different families. This was then followed by semi-structured interviews with the representatives of 11 of these PICs. Findings indicate that there  is a need for the existing guidelines to be improved for them to become more in line with the needs of PICs which are characterised by dominant family interests. In this respect, this paper recommends possible principles and guidelines that may be used by the relevant authorities either to improve the existing PIC guidelines or to issue a new set of guidelines aimed specifically for family PICs. Given the peculiarities of such companies, it is clear that the guidelines have to contain elements that address the CG structure, such as the need to formally document a family governance plan. Clearer guidance is needed on the appointment and composition of the Board of Directors, on the employment, conduct, compensation and performance evaluation of managers, as well as on the composition of the ownership of family PICs. Additionally, the paper concludes that a relevant factor for family PICs in carrying out improvements to their CG is that they continue to place more importance than other PICs to their continued existence. 

Keywords: Corporate Governance, Guidelines, Family, Public Interest, Malta, Development Bank

*Corresponding author:


Article history:    Received  14 01 2020   Revised   1 02 2020 Accepted 22 03 2020

**This article was presented at the 8th International OFEL Conference on Governance, Management and Entrepreneurship. From Corporations to Social Entrepreneurs:

Exploring the Different Faces of Social Innovation (April 17th – 18th, 2020, Dubrovnik, Croatia, Governance Research and Development Centre CIRU), Zagreb, pp. 2-24 (Edited by Ercan Ozen and Lana Cindric)

Cite Article (APA): Baldacchino, P.J., Cachia, K., Tabone, N., Grima S., Bezzina F. 2020.Corporate Governance Guideline Relevance To Maltese Family Public Interest Companies A Small State Perspective.The Journal of Corporate Governance, Insurance, and Risk Management (JCGIRM).2020, Volume 7, Series 2, Pages 14 -41


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