In some of the nations such as Hong Kong, there are a number of companies which are controlled by the family members and other small groups. The family members which control the businesses can also have a negative impact on many of the minority shareholders because of the increase in the agency costs. This is because many of the shareholders are generally unencumbered because of the corporate governance structures which are established for the family listed companies. In order to ensure that the family listed companies work in an independent manner, it is important that there should be the promotion of the interest of the board of the director of the company rather than the family member. Another principles state that there should be independence among the way in which the people work in a family listed companies. This principle is helpful because it will help the executive management group to work in an independence manner. These principles are also important as it helps the investors to protect their rights. The listed family companies can’t use the assets which are reserved for the company for their own personal use. This is because the asset which belongs to the listed company also belongs to the investors of the company. Therefore, the investors also have the right to ensure that the business should run in an efficient manner and there should be returns to the shareholders of the company. These principles are helpful as it helps to preserve the independence of the shareholders of the company and it also attempts to do the prevention of the conflict of the interest which can take place when there is a conflict of interest amidst different shareholders of the company (Christensen et al., 2015). There are a number of indications which support for the existence of the control on some of the entities which are related to the company. This may include the holding of the majority of the ownership interest and control on the associated rights for voting either through the singularity or in conjunction with some of the close members of the family. Also because of these principles, there can be a control on the board of directors and the members of the family. It is important to have the principles in order to have the long term survival of the company and to work in a fare manner which includes the independence in the analysis of the objective. This independence is required both in the process of decision making and also in the process of monitoring of the company. The board members who may be elected from within the company aren’t able to work in the manner which has been actually desired for the business (Council, 2007). These principles and recommendations help in the smooth running of the companies for long times. Also because of these principles, there can be protection for the shareholders when their rights are violated.