Family owned businesses are the backbone of many economies around the world. Increasing growth and globalization has brought many challenges for family businesses. They way you deal with them can mean the difference between success and failure. By adopting sound corporate governance system, many of these challenges can be tackled. In this thesis we describe the importance of corporate governance system in family owned business. This study examines the theoretical background of corporate governance in family business in Pakistan. Introducing the concept of good corporate governance is vital for the continuity and sustainability of the family owned business that support economic growth. In addition to board of directors, more non-executive and independent directors, board committees, bylaws and company codes should be introduce in a company. Corporate governance will ensure that FOBs are transparent enough to satisfy various stakeholders such as suppliers, customers and creditors

BBA