Family governance is an absolute requirement for high net worth families with multiple stakeholders. Our team of lawyers, administrators, accountants and investment professionals partner with the family to assess, plan and implement a family governance plan covering aspects such as generational ambitions, the family DNA and decision-making structures.
Guiding your family’s future wealth management decisions.
After getting to know and understand the family dynamics and the family members, the first step is to draw up a family constitution, also known as a family charter. This is a written statement that serves as a record of the family’s heritage, culture, hopes and ambitions for future success, as well as a plan for how to achieve this. It generally includes a mission statement, code of conduct and communication rules.
In family-owned businesses, a detailed family constitution lays down ground rules to ensure and delineate long-term ownership. It keeps the family together, but also provides a mechanism for separation, explaining how the business will be valued and shared if a family member is seeking to exit.
The constitution, when adopted by the trustees of the family trust or the directors of the family group holding entities, goes a long way towards informing and guiding decisions that may well have legally binding results and is used to inform legally enforceable agreements.