Corporate governance often refers to a set of rules and principles by which a company is run. It provides a guideline for directing a company to achieve its goal, adds value to the company and is beneficial to shareholders in the long term. (1) The rules and principles of corporate governance to some extent might be different in various companies, but some of these rules are similar in all companies; such as responsibility and accountability to shareholders and commitment to conducting business ethically. (2)Family businesses are the main form of business in many countries. In the Middle East, over 80% of businesses are owned or operated by families (3). In Latin America, Brazil, more than 50% of the largest companies (more than 100 companies) are family-controlled (2). A significant number of all family businesses were created in the 1950s or early 1960s, meaning they will experience a generational change in the next five to ten years. It goes without saying that generational turnover makes corporate governance more essential for family-run businesses. As time passes, a business goes through different phases; initiator, 2nd generation, 3rd generation, and so on or as Harvard professor John Davis places them, according to Family Business Challenges (2), founder phase, sibling partnership, cousin confederation, etc. During the founder phase, normally only one person, the founder, manages the company. Surely at this stage a set of rules are necessary, but subsequently the main challenge arises to keep a family business intact, which is to preserve the unity of family members and their interests. This issue is certainly more critical… middle of the paper… shareholder rights. The other factor is the board of directors which we have discussed this topic before. And the last is the transparency and disclosure of information prepared and disclosed in accordance with high quality standards of accounting, financial and non-financial reporting or annual audit conducted by an independent, competent and qualified auditor in accordance with international auditing standards . (1) (2)In conclusion, it has been established that corporate governance is a crucial aspect of managing family businesses. This essay proposes three elements of good corporate governance practice, but there are many other elements that can be incorporated to have a successful family business. In the end it must be said that not a solution (element), but a combination of elements must be designed specifically for the company in order for the enterprise to be successful.