Succession is challenging for all businesses and becomes even more complicated when it comes to blended families.
Members of non-traditional families all want their fair share of inheritance.
In the case of tobacco, beer and airlines tycoon Lucio Tan, his wife Carmen and their children are taking control of the family’s business empire, valued at $3.6 billion according to Forbes.
Their daughter, Vivienne has been thrust into the spotlight, taking on key roles in the LT Group, the listed holding company of the 84-year old Tan with interests in banking , airline, liquor, tobacco, real estate, education, and healthcare.
Vivienne’s rise was rapid and sure. In May, she was elected as director of LT Group. Just last week, she was appointed as board member at MacroAsia Corp. and last Tuesday, she was named officer-in-charge of PAL following the surprise retirement of the flag carrier’s president Jaime “Jimmy” Bautista.
She is widely expected to call the shots on the future of LTG, which comprises Philippine National Bank, Philippine Airlines, Tanduay Distillers, Asia Brewery, Philip Morris Fortune Tobacco Corp. Eton Properties, University of the East and University of the East Ramon Magsaysay Memorial Medical Center.
Her brother, Lucio “Bong” Tan Jr. heads TDI. He also sits as director and EVP of Fotune Tobacco Corp. and board member at PAL Holdings, PNB, MacroAsia, PMFTC, and Victorias Milling Co.
In a disclosure to the stock exchange Wednesday, LTG said its board agreed to restore the position of vice chairman in its corporate structure and accordingly amend the corporation’s by-Laws to reflect the same.
Under LTG’s amended by-laws, the vice chairman wields substantial power as the chairman.
The vice chairman is authorized to preside at all meetings of the stockholders and the board of directors in the absence of the chairman, who happens to be Tan. He or she also has the power to hold meetings upon the request of a majority of the directors.
This amendment is designed to ensure that all bases are covered and that all investments and finances of the taipan are accounted for.
It’s no secret that Tan, Philippines’ seventh wealthiest man, also has another son, Michael, who heads LTG.