As families expand in both size and complexity, varying perspectives on decision-making, family involvement, and ownership naturally arise among members. Establishing clarity becomes a vital cohesive element to ensure that expectations of and from the business are defined and mutually understood. A family constitution emerges as a binding force, actively preventing potential misunderstandings stemming from differing views within the family.

Purpose

  1. Establish written rules and policies as reference points. 
  2. Address potential conflicts and outline mediation procedures to safeguard against possible disputes. 
  3. Document the governance roadmap, especially the formalized decision-making process transitioning from a founder-led structure to a sibling partnership.
  4. Proactively develop a system that ensures everyone can identify their role, promoting inclusivity and value for every member

Contents

  1. Introduction
  2. Glossary of Terms
  3. Purpose

How We Live Together

  1. Statement of values
  2. Communication Policy
  3. Conflict resolution & Mediation
  4. Responsibility towards family members
  5.  Lifestyle Management

How We Work Together

  1. Business Decision-Making
  2. Work Ethic
  3. Family Finance Vs. Personal Finance
  4. Business Proposals and Investment Policy
  5. Family Employment Policies
  6. Compensation/performance evaluation policies
  7. Family Business Ownership Policies

Governance Mechanisms

  1. Family Council (FC)
  2. Board of Directors

Constitution Guidelines

  1. Amendment in Family Constitution
  2. Statement of adoption with signatures

How can we help?

Families often face challenges when initiating the governance process, primarily due to the discomfort associated with reevaluating the status quo and engaging in challenging conversations. Bringing in an external advisor to guide the process not only injects necessary urgency and momentum but also offers an impartial perspective.

Our Process

  1. Family Business Assessment
  2. Individual in depth interviews
  3. Preliminary draft and circulation
  4. Consensus development
  5. Family Council establishment
  6. Presentation, ratification and celebration
  7. Preliminary Family council meeting
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