Sirmax establishes a Family Council

The Pavin family, at the helm of Sirmax Group – a Padua-based producer of thermoplastic compounds – has announced the establishment of a family Council, a strategic and values-driven advisory body designed to safeguard the continuity of the business and foster cohesion between the family and management. The Council provides a clear and transparent framework governing the relationship between the family and the company, as formalised in the Family Agreement.

Following the appointment in 2023 of two independent directors to the Group's Board of Directors – Alessandro Minichilli, Full Professor at the Department of Management and Technology at Bocconi University in Milan and an expert in succession, transition and professionalisation processes in family businesses, and Mauro Fenzi, former General Manager of Sacmi with extensive technological experience in the automotive sector and industrial automation – the establishment of the Family Council represents a further step in strengthening corporate governance. The Family Agreement is now an established practice both nationally and internationally for managing generational coexistence and succession within family businesses; in the case of the Pavin family, it applies to all companies within the group, including those outside the Sirmax perimeter.

The family Council's functions and objectives include: preserving and promoting the founding values of the group and the family in the conduct of business; formulating proposals for Board appointments and providing high-level strategic guidance; establishing behavioural standards and guidelines for family members' access to roles within the company, based on competence and merit; regulating policies relating to succession, the development of future generations, and dividend remuneration; and ensuring that the interests of the group take precedence over those of individual members. The Council has no legal standing but carries a moral authority: it is a guidance body that operates above management level without interfering in day-to-day operations, and in full respect of the company's statutory prerogatives, which have been duly reviewed and adapted to the new governance structure. In this context, the Board of Directors retains full decision-making autonomy and may adopt resolutions even where these diverge from the family's preferences, in accordance with the established governance framework.

The Pavin family's decision to establish the Family Council came at the conclusion of aprocess spanning more than a year, developed through a structured and participatory approach involving all family members, in keeping with the values instilled by the founder, Giancarlo Pavin. The project was carried out with the support of a team comprising Alessandro Minichilli himself, one of the foremost experts on entrepreneurial families, together with the company's longstanding advisers Barbara Marazzi and Roberto Baggio, who have accompanied the group through its principal growth milestones.

"We wanted to secure the company's future through a strong and independent management team – one that cannot be influenced by family dynamics, yet remains guided by family values, particularly as the family continues to grow," said Massimo Pavin, Chairman and Chief Executive Officer of Sirmax Group. "Having established that our adult children wished to preserve the company as a family business, we set clear rules. Those who lead must occupy the role that best matches their skills".

The family Council also provides reassurance for management, offering a stable reference framework with clear rules and values. "I feel more at ease," added Massimo Pavin, "and this sense of stability strengthens those who work alongside us. We are well aware that the economic environment is challenging, but challenges are there to be overcome".

Roberto Pavin, brother of Massimo Pavin and CFO of Sirmax Group, has been appointed President of the family Council. Marco Pavin, Massimo Pavin's eldest son, who has spent the past five years at the American subsidiary Sirmax North America where he serves as Sales Director, has been appointed Vice-President, whilst Federica Pavin, Massimo Pavin's second child and Sustainability Manager of Sirmax Group, has been appointed Secretary. The Pavin family has chosen to establish the Family Council to protect the company, its shareholders and its employees, avoiding nepotism and ensuring a clear balance between ownership and management. This decision reinforces the group's commitment to a modern, meritocratic governance model oriented towards generational continuity.