Your employer most certainly "governs" your life in ways you may not even be conscious of. Just because they don't have a label on it in that way doesn't mean the concept doesn't exist. Industrial feudalism is the same as the old ways, it just confuses people more because there are innumerable things to do, buy, and see. You're "employer" is no different than a fief. The "entity" is the manor. The "inheritance" is described in the companies by-laws. And yes, it is 100% legal to have direct inheritance to your kin, and you can even write it in the by-laws that cannot be usurped by the board. You can write whatever the hell you want so long as it doesn't go against the way the federal government wants you to play the game (IE, basically the Emperor of the HRE or Emperor of China proclaiming a mandate for all tributaries to follow).

Your behavior is shaped by so many external influences that we often forget that the government most often has very little direct influence in our lives. Businesses typically encounter more interactions with the government, but average folks interact with businesses. Corporate cultures in a weird way end up becoming our "culture" we believe in, our "religious" views (not in a theological way). While we're all essentially considered "Freemen" in this world, sometimes you are not because of things like bills or debt bondage. You cannot leave from your "Lord" or "company" because you owe a debt somewhere or simply cannot afford to leave. It's a complicated system, but the concept of fuedalism has just been expanded.