Duties of a typical family council would include: The primary link between the family, the board, and senior management. Suggesting and discussing names of candidates for board membership. Drafting and revising family position papers on its vision, mission, and values. Drafting and revising family policies such as family employment, compensation, and family shareholding policies. Dealing with other important matters to the family Family Business Constitution (“FBC”) Unlike a Family Counsel, whose objective is to provide a sounding board for family members and to assist in conflict resolution and/or arbitration, the Family Business Constitution is a written document that serves as a roadmap for business continuity family harmony. and A family constitution is blue-print that clearly states the family vision, mission, values, and policies regulating family with the business. members’ relationship The FBC is a living document that evolves as the family, its investments and its businesses continue to evolve. As a consequence, it is necessary to regularly update the constitution in order to reflect any changes in the family and/or the business. The difference between the FBC and a are the signatories. All family shareholders’ agreement members are party to the FBC, not just owners. The form and content of family constitutions differ from one family business to another Components: depending on the size of the family, its stage of development, and the degree of involvement of family members in the business. However, a typical family constitution will cover the following elements: Family values, mission statement, and vision. Family institutions, including the family assembly, the family council, the education committee, the family office, etc. Board of directors (and board of advisors if one exists).
Duties of a typical family council would include: The primary link between the family, the board, and senior management. Suggesting and discussing names of candidates for board membership. Drafting and revising family position papers on its vision, mission, and values. Drafting and revising family policies such as family employment, compensation, and family shareholding policies. Dealing with other important matters to the family Family Business Constitution (“FBC”) Unlike a Family Counsel, whose objective is to provide a sounding board for family members and to assist in conflict resolution and/or arbitration, the Family Business Constitution is a written document that serves as a roadmap for business continuity and family harmony. A family constitution is blue-print that clearly states the family vision, mission, values, and policies regulating family members’ relationship with the business. The FBC is a living document that evolves as the family, its investments and its businesses continue to evolve. As a consequence, it is necessary to regularly update the constitution in order to reflect any changes in the family and/or the business. The difference between the FBC and a shareholders’ agreement are the signatories. All family members are party to the FBC, not just owners. Components: The form and content of family constitutions differ from one family business to another depending on the size of the family, its stage of development, and the degree of involvement of family members in the business. However, a typical family constitution will cover the following elements: Family values, mission statement, and vision. Family institutions, including the family assembly, the family council, the education committee, the family office, etc. Board of directors (and board of advisors if one exists).
3%20management%20and%20governace%20guidelines%20Sept%202016.docx