The Roots of Family Business Governance in Roman Law
Family businesses have long shaped the course of history.
When we think of family businesses today, we imagine modern enterprises navigating the world’s complex markets. But the idea of families governing businesses together isn’t new—it’s ancient. Long before corporate boardrooms and formal constitutions, families found ways to govern their enterprises with principles that still resonate today.
How Roman Law Shaped Family Governance
The roots of family business governance trace back to ancient Rome, with a system called the consortium ercto non cito. This system allowed families to remain united after the death of a patriarch. Rather than dividing the inheritance among individual heirs, all rights were vested in a community of co-heirs. (Zimmerman, 1990, p. 452) The consortium ensured that heirs worked collectively to manage and grow the family’s assets, establishing one of the earliest examples of shared governance.
As times changed, Roman families adapted these principles to more profit-driven ventures, creating partnerships like the societas fratum—literally, a “partnership of brothers.” (Fleischer & Prigge, 2023, p. 5) These frameworks, built on shared goals and mutual accountability, laid the foundation for what we now recognize as family business governance.
The brilliance of these ancient systems lies in their balance of structure and relationships—a harmony that modern family businesses still strive for. Understanding their origins helps us appreciate the timeless importance of governance that prioritizes not only financial success but also the bonds that hold families together.
Build Your Family’s Legacy Today
At Family Creed, we honor this legacy by helping families craft governance frameworks that blend tradition with modern needs. Reach out to us at contact@familycreed.co for more information.
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References
1. Zimmermann, R. (1990). The Law of obligations: Roman Foundations of the Civilian Tradition. Juta & Co, Ltd.
2. Fleischer, H., & Prigge, S. (2023). Family firms and family constitution. Emerald Group Publishing.
