Family Business
Family council
A family council is a governance body that focuses on family matters, frequently developing family participation policies, and dealing with liquidity issues and estate planning
family council benefits are
-promote communication
-provide a safe harbor for the resolution of family conflicts
-support the education next generation family members about family dynamic and ownership issues
Boundaries
The family council and board of directors are separate division. Therefore, two of them still relate to each other
At annual shareholders’ meeting, the board of directors is elected by the family.
Family members exercise their responsibilities as shareholders and are informed of company performance, returns on shareholders’ equity, and dividends to be distributed.
Board of directors
Board of directors is a legal entity
Board of directors can come from family and non-family employee
The requirements of a director based on: his / her reputation competence willingness to serve on the board highly qualified candidate
To be a board of directors, the employee should come through the
Management- top management – CEO – and broad directors
The primary responsibilities of a board of directors include :
Reviewing the financial status term
Set the company strategy
Looking out for shareholders ’ interest
Ensuring the ethical management of the business
Being a respectful critic of management
Reviewing CEO performance
Advising the CEO
Bring fresh perspective issues
Assisting on the succession and continuity process
FAMILY CONSTITUTION
Definition
The Family constitution is a statement of the principles that outline the family commitment to core values, vision, and mission of the business that shareholders will follow in their relations with each other, other family members, and company managers.
Components
The content of family constitutions is different depend on the size of the
A family council is a governance body that focuses on family matters, frequently developing family participation policies, and dealing with liquidity issues and estate planning
family council benefits are
-promote communication
-provide a safe harbor for the resolution of family conflicts
-support the education next generation family members about family dynamic and ownership issues
Boundaries
The family council and board of directors are separate division. Therefore, two of them still relate to each other
At annual shareholders’ meeting, the board of directors is elected by the family.
Family members exercise their responsibilities as shareholders and are informed of company performance, returns on shareholders’ equity, and dividends to be distributed.
Board of directors
Board of directors is a legal entity
Board of directors can come from family and non-family employee
The requirements of a director based on: his / her reputation competence willingness to serve on the board highly qualified candidate
To be a board of directors, the employee should come through the
Management- top management – CEO – and broad directors
The primary responsibilities of a board of directors include :
Reviewing the financial status term
Set the company strategy
Looking out for shareholders ’ interest
Ensuring the ethical management of the business
Being a respectful critic of management
Reviewing CEO performance
Advising the CEO
Bring fresh perspective issues
Assisting on the succession and continuity process
FAMILY CONSTITUTION
Definition
The Family constitution is a statement of the principles that outline the family commitment to core values, vision, and mission of the business that shareholders will follow in their relations with each other, other family members, and company managers.
Components
The content of family constitutions is different depend on the size of the