What is a family constitution?
A family constitution also known as a family creed, family charter or family agreement is a very useful tool for business families.
- It documents the values and principles that will underpin the conduct of the family business
- It defines the strategic objectives of the business
- It sets out the way in which the family will make decisions affecting the ownership and management of the business
Does a family constitution help prevent conflict?
No. Sadly, it doesn’t. But it does something far more realistic- it provides a written mechanism to manage and resolve conflict.
Plus, while creating a family charter the family has to come together to consider important issues about the future of the family business ensuring that everyone reaches a consensus.
Yes! I would like to create a family charter to easily manage and resolve issues