Benefits of Family Council Family Business Office

FAMILY COUNCIL FOR FAMILY-OWNED BUSINESSES

Family businesses are quite unique as compared to other businesses. Family businesses have the distinct advantage of relationships and subsequently the emotions that run across the family, which leads to a very strong commitment, resulting out of mutual care and even caring for the customer needs. Simultaneously, the difference of opinion also arises due to growth in the family and the business.

WHAT IS A FAMILY COUNCIL?

Family council is a forum where all the issues pertaining to the family & business are discussed openly from the family perspective, agreed upon and conveyed to the board of directors
Family council is a platform which gives equal opportunity to all participating family members to share their concerns and expectations in all transparency so that the family can remain aligned and the business sustains over the generations

WHO CAN BE PART OF THE FAMILY COUNCIL?

Family council is a forum of all family members who are above the age of 15
Any family member whether employed with the family business or not, shareholders and non-shareholders, spouses and children can be part of the family council

1.Family Council For Family Business | Nilesh Arora

ADVANTAGES OF HAVING A FAMILY COUNCIL:

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

The values, business philosophy, purpose of the business, code of conduct shared between the family members can be driven across generations through discussions and agreements
Family business can utilize the strengths of all the family members involved in the business for creating a foresight, a vision which can ensure that the family business lasts for generations
Through the family council, the internal challenges between the family members can be understood, discussed and resolved through a well streamlined conflict resolution process
Family members can understand the needs and expectations of the new generation and create a suitable space for the entrants through succession planning, exit policy and entry policy
Family members can feel secure as their voices can be heard and the board of directors can translate those into business goals to be achieved by the management
Family wealth management can be done with greater ease due to aligned expectations
The family council provides feedback to the board on how the board’s decisions are impacting the family and provide input to optimize those decisions
The family council is very similar to the board of directors, which can assist the family in finding solutions to the complex problems of relationships and business, when the family is in the business together

ELEMENTS OF THE FAMILY GOVERNANCE SYSTEM

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