Sir Michael, the company's founder, has been chairman of Michael Hill International since the company listed on the NZX in 1987.
The company has grown from its first store in Whangarei to an international jewellery brand with 300 stores across Australia, New Zealand, Canada and the United States and has revenue of $A500 million ($NZ563 million).
Forsyth Barr broker Suzanne Kinnaird said it was the end of an era, although Sir Michael would remain on the board as a non-executive director.
The transition for Ms Hill to take over as chairwoman was expected but had come earlier than anticipated, she said.
Ms Hill had worked for MHI for 30 years, including establishing its Canadian division as general manager from 2002-07.
In a statement, Sir Michael welcomed Ms Hill's appointment.
''Emma has learnt jewellery retailing from the ground up, has worked across the breadth of the business and across our international marketplaces.
''I'm thrilled Emma has gained the full support of the board for appointment as chair and proud to have a daughter who is incredibly passionate about the family business and has the expertise to chair the company over the next period of growth and development.''
