Japan Family Business Advisors Association Submits Public Comment on "Draft Family Governance Guidance"

The Japan Family Business Advisors Association (FBAA) has submitted a public comment on the "Draft Family Governance Guidance" published by the Ministry of Economy, Trade and Industry.

We highly evaluate this draft guidance as having significant meaning in systematically outlining the organization of relationships between family, ownership, and management, and the importance of governance for the sustainable growth of family businesses.
However, we expressed concern that its descriptive structure could be strongly interpreted as "family for the business," potentially relegating the family's values and autonomy to the background. We believe it is indispensable to clarify the premise that the essence of family business lies in the sustained mutual influence of business and family as equal partners.

Furthermore, considering the practical characteristic that governance does not function solely through institutional design but heavily depends on operational aspects such as dialogue, trust, and consensus building, we proposed the importance of viewing "systems" and "people, relationships, and operations" as an integrated whole. In addition, we pointed out the necessity of positioning business succession not merely as a plan but as a long-term process involving the formation of consensus among stakeholders, and the importance of explicitly stating "relationship capital"—the accumulation of trust both within and outside the family—as a core concept of governance.

FBAA boasts over 300 members, including diverse experts from family owner backgrounds, who are involved in on-site support for business succession and family governance. This opinion is based on knowledge accumulated through such practical work and serves as a proposal from the perspective of enhancing the effectiveness of the guidance.

For more details, please refer to the attached submission materials. FBAA will continue to contribute to the improvement of social value through proposals based on practical knowledge and human resource development, aiming for the sustainable development of family businesses.

■ Chairman's Comment

Japan Family Business Advisors Association

Chairman Kazuki Takei

"The strength of family businesses lies not in systems, but in 'relationships.' Systems are important, but they don't function on their own. In real-world settings, the quality of dialogue and a sense of conviction determine the quality of decision-making, and therein lies the source of sustainability. This proposal is based on this real-world reality. We hope that the guidance will not merely remain a guideline for system development, but will bring out the essential value of family businesses."

■ About Japan Family Business Advisors Association (FBAA)

Established in 2012 as a professional organization supporting family businesses in Japan, FBAA is characterized by its integrated approach to the three domains of family, ownership, and management. With over 350 members, including tax accountants, financial institutions, lawyers, executive coaches, owner-managers, successors, and non-family executives, people involved in family businesses from various positions share and integrate diverse practical knowledge, contributing to the perpetual development of family businesses.

URL: https://fbaa.jp/

■ Contact Information

Japan Family Business Advisors Association

Director & President Hiroyuki Kobayashi: kobayashi@fbaa.jp

Executive Director, Secretary General Masami Ueda: admin@fbaa.jp

(Attached Materials)

Opinion on "Draft Family Governance Guidance" submitted on April 27, 2026