Family Governance For Family Owned Business

“Family Business Governance reduces the probability of failure of the family business and transforms it into a multigenerational legacy by choice”

Well designed family business governance structures prevent the trivial family issues from getting converted into larger family conflicts and unmanageable business issues.

For the family firms “ Governance is the means leading the family and the organization through mutligenerations with ease" .

Through the Governance structures, family relationships are aligned, roles and responsibilities are defined witth clear boundaries, wealth is managed keep in sync with the vision of the founder and the family value systems.

Family Governance structures help strenghten the emotional bonds, build core capmpetence in the business, and great ensure business success and family happiness.

Family Business Governance | Nilesh Arora

The three components which are critical to any family business are:

The family constitution design helps the family businesses in the following ways:

  1. Business
  2. Ownership or Shareholder
  3. Family

Each dimension needs to undergo a formal process

2. Effective Family Corporate Governance | Nilesh Arora -

ELEMENTS OF THE FAMILY GOVERNANCE STRUCTURE

  • Family Council
  • Founders Business Office
  • Family Business Forum
  • Non-Business Family Forum
  • Family Values
  • Family Code Of Conduct
  • Family Fund
  • Share Ownership & Dividends
  • Family Retreats & Family Assembly

3. Governance Challenges For Family Owned Businesses | Nilesh Arora -

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