The learning outcomes are as follows: analyse how patriarchal traditions in family businesses influence leadership and succession using insights from Institutional Theory; evaluate and compare the arguments advanced by Valli and the Murugappa family regarding board representation in patriarchal family businesses using rights, legitimacy/fairness and governance lenses; assess the strategic and governance value of gender-diverse boards in family enterprises by applying Agency Theory; diagnose the barriers and implementation challenges involved in shifting a conservative family enterprise toward a more inclusive governance model; and recommend and design actionable governance mechanisms to balance legacy with inclusion and to prevent or resolve future conflicts, applying legal and ethical lenses.
The Murugappa Group, a diversified conglomerate with roots traced back to 1900, is one of South India’s oldest and most respected business houses. Known for its conservative approach, collective decision-making, and a wide array of businesses spanning finance to agriculture, the group had traditionally been led by male members of the founding family. This tradition faced a significant challenge in 2017 with the passing of MV Murugappan, the former executive chairman and grandson of the group’s founder, Dewan Bahadur AM Murugappa Chettiar. He left behind his wife and two daughters, including Valli Arunachalam, the eldest. This case examines the ensuing battle waged by Valli Arunachalam for a seat on the board of Ambadi Investments Limited (AIL), the Murugappa Group’s family holding firm, highlighting the clash between tradition, gender equality and shareholder rights.
The case can be used in postgraduate or executive management programs to teach the concepts of Gender Equality and Inclusion in Family Business Governance.
CSS 7: Management Science.
