CONTENTS

 GOVERNANCE
 FLOW OF GOVERNANCE
 INFORMALITY TO FORMALITY
 FAMILY GOVERNANCE
 FAMILY COUNCIL
 ISSUES IN MEETING OF FAMILY COUNCIL
 FUNCTIONS OF FAMILY COUNCIL
 FAMILY ASSEMBLY
 FAMILY CONSTITUTION
 PROCESS FOR PREPARE THE CONSTITUTION
 CONSTRUCTION OF FAMILY CONSTITUTION
 FAMILY CREED
 FAMILY OFFICE
 GOVERNORS
BOARD / FAMILY COUNCIL /
OWNERS FORUM

EXECUTIVES
MANAGER /
FAMILY LEADER

BENEFICIARIES
SHAREHOLDER
FAMILY MEMBERS
INFORMALITY TO FORMALITY
 DURING THE FORMATION PHASE OF FAMILY BUSINESS,
GOVERNANCE IS NOT NEED NOT BE FORMAL.

 EVERY INFORMAL GOVERNANCE CAN PRODUCE

OUTSTANDING RESULTS.

 HOWEVER, AS FAMILY SIZE INCREASES OR AS BUSINESS

GROWS, FORMALISING BECOMES NECESSARY WITH
VARIATION OF PACE AND DEGREE
SOME FACTS ABOUT GOVERNANCE
 Governance is A roots in objectivity and independence
of the people.
 Evaluation and accountability are critical to it.
 Governance is a much wider term and includes setting
up of goals and targets.
 Governance promote professional approach.
 Governance focuses on developing an open
environment.
 Government act as a innovation.
 FAMILY GOVERNANCE

FAMILY
FAMILY FAMILY
CONSTITUTION
COUNCIL ASSEMBLIES
SOME ISSUES NEED FAMILY
GOVERNANCE
 Family business provide the joy of living and working
together.
 Family members work with people who are very close and
important.
 Family dynamics can result in negative feelings.
 Family owners tend to neglect their family and usually take
family relations for granted.
 Huge emotions are there.
 Increment in family business work.
FAMILY COUNCIL
 As a family grow, the need for managing them
increases.
 Family members need to constitute a body
that is responsible to manage the affairs of the
family.
 The family council should have one member elected
per family branch.
SOME ISSUE COVERED IN
FAMILY COUNCIL
 All business related relevant facts, decisions and developments .
 Financial performance and auditors reports on periodical financial
performance.
 Any significance changes in outside shareholding pattern.
 Sales of the business
 Entry and exit of key managers
 Environmental changes.
 Major capital expenditure plans.
 Reports of the board of directors
 Report of the CEO on strategic directions and future scenario
GOAL
 ENSURING INDIVIDUAL GROWTH.
 ENSURING GROWTH OF FAMILY BUSINESS.
 ENSURING SUCCESS OF GOVERNANCE PROCESS.
 FACILITATING SUCCESSION.
 PROVIDING A PLATFORM FOR OPEN
COMMUNICATION.
 CONFLICT RESOLUTION.
 ENSURING CONTINUOUS LEARNING FOR FAMILY
MEMBERS.
 SAFEGUARDING FAMILY WEALTH.
FUNCTIONS
 FAMILY VISION AND MISSION
 PREPARING FAMILY POLICIES
 DEFINING ROLES, RIGHT AND RESPONSIBILITIES
IN FAMILY BUSINESS
 MANAGING FAMILY BUSINESS, FAMILY
OWNERSHIP
 PROVIDING FOR SECURITY OF FAMILY MEMBERS
FAMILY ASSEMBLY
 Many families have a separate forum in form of family
assembly where they discuss issues that are of primary
concern to the family.
 These forums are used to discuss business issues that
are important to the family.
 They are likely annual general meeting of the
shareholders.
 They are more informal than shareholders meetings.
 Many aspects of family council as discussed above also
apply to family assemblies.
FOUR COMPONENTS OF FAMILY
ASSEMBLYS
 FUN
 INCULCATION AND ARTICULATION
OF VISION AND VALUES.
 DECISION MAKING ON CRITICAL
ISSUES.
 LEARNING AND EDUCATION.
FAMILY ASSEMBLY
 Analyzing business performance.
 Election of family council members.
 Report of the last council.
 Items of agenda can also be invited from family members who
wants a particular issue to be discussed.
 Since children also participate in family assemblies, they learn
about family culture, family values and also about the business of
the family.
 The assembly elects members of family council, and also sets the
guidelines for the functioning of the council.
FAMILY CONSTITUTION
 CONSTITUTION HELPS IN BRINGING THE FAMILY TO A
COMMON VIEW OF ITS RELATIONSHIP TO THE COMPANY
AND TO EACH OTHER AND WORKS AS A FRAME OF
REFERENCE TO HELP PREVENT OR RESOLVE FUTURE
FAMILY AND BUSINESS PROBLEMS.

 FAMILY CONSTITUTION IS ONE DOCUMENT THAT CAN DEAL

WITH ALL THESE IMPORTANT ISSUES.
THE PROCESS
 DISCUSSIONS ON GOALS, SCOPE AND VALUES.
 FACT FINDING.
 PREPARING THE DRAFT.
 DISCUSSION ON THE DRAFT.
 FINAL DRAFT
 ADOPTION
 IMPLEMENTATION.
CONSTRUCTION OF DRAFT
 INTRODUCTION.
 PRINCIPLES.
 VISION AND MISSION.
 SYSTEMIC RELATIONSHIPS.
 INTER PERSONAL RELATIONSHIPS.
 OWNERSHIP AND MEMBERSHIP ISSUES.
 ACTION PLAN.
POLICIES
 VISION AND MISSION STATEMENT
 CONFLICT RESOLUTION POLICY
 DECISION MAKING PROCEDURE
 COMMUNICATION POLICY
 FAMILY COUNCIL RULES
 MENTORING POLICY FOR YOUNGSTERS
 CHARITIES AND ACTIVITIES RELATED POLICIES
 POLICY FOR NON PARTICIPATING FAMILY MEMBERS
 POLICIES FOR EXPENDITURE
FAMILY CREED
 FAMILY CREEDS ARE DCUMENTS THAT WORK AS
A GUIDEPOSTS IN TIMES OF CONFUSION AND
CRISIS.
 THEY CAN ALSO BE CALLED A “CODE OF
CONDUCT”
 SEPARATES CREEDS CAN BE DEVELOPED FOR
YOUNGSTERS,SENIORS,MARRIED
COUPLES,WORKING MEMBERS AND
SHAREHOLDERS.
FAMILY OFFICE
 MAINTENANCE OF THE TAX RECORDS OF THE FAMILY
MEMBERS.
 KEEPING TRACK OF FAMILY INVESTMENTS IN SHARES,
SECURITIES AND FIXED DEPOSITS.
 MAINTENANCE OF IMMOVABLE PROPERTIES.
 DEVELOPMENT OF NEW BUSINESS OPPORTUNITIES.
 RECORD AND UPKEEP OF FAMILY HISTORY.
 MANAGING VARIOUS SOCIAL ACTIVITIES.
 MANAGING FAMILY EVENTS LIKE MARRIAGE AND SO ON.
CONCLUSION
 FAMILY GOVERNANCE IS NECESSARY TO CODUCT
THE BUSINESS IN SYSTEMATIC FORMAT.
 FAMILY GOVERNANCE PROVIDE HELP TO
CONTINUING A LONG RUN BUSINESS.
 FAMILY GOVERNANCE PROVIDE A FLOW OF
WORK.
 FAMILY GOVERNANCE HELP TO MAKE
REPUTATION IN THE MARKET.
PRESENTERS
 NISHA
 REKHA
 SUNITA
 JITU
 NITESH