FBS
Education This policy may provide funding for the education of family members, including educating them about the family business.
Philanthropy Where families are involved in philanthropy they may decide to co-ordinate their giving so that it becomes a shared activity among the family and their giving, through being combined, has greater impact. The policy can determine the scale of giving and how decisions will be made about supporting different types of charitable works.
New Ventures Families sometimes like to encourage entrepreneurship through creating a fund that can be used to support new ventures started by family members. The policy will determine how to apply for funding, the type of funding available and the return on investment required by the new venture fund. As well as giving family members the means to pursue their own aspirations, this fund can also lead to diversification of the family’s overall enterprise.
Media and PR Many families are concerned about how their affairs are reported in the media. In order to achieve overall consistency and some element of control a media policy can determine how the family manages publicity surrounding their private and personal lives. It may also specify types of conduct that should be avoided since they could affect the reputation and standing of the family and their business. The policy can also include a requirement that all PR issued by the business must first be circulated among the family and may, in some cases, require to be approved by the family.
Who can attend? The role of the Family Assembly and the power and influence it can wield, will be linked to the decision about who can attend. In each case the answer to this question will be influenced by the family’s view on matters such as the age at which family members are felt to be mature enough to participate in a Family Assembly and whether or not spouses should be involved.
The constitution of the Family Assembly will also need to specify how it will be administered, how often the Assembly will meet, what formality is required to convene and run the meetings and how any formal decisions are
to be taken. Sometimes it is helpful to appoint or elect a separate group with responsibility for running the Assembly and to be the main governance link between the wider family and other parts of the enterprise, such as a board of directors. This separate group is called a Family Council and the following illustration shows how important a role it can perform in overall governance.
An important part of creating these structures is deciding how the different roles in the structures will be populated. Family governance structures, like the Family Assembly and Family Council can create opportunities for family members to have a meaningful role in governing their enterprise without necessarily having to join the enterprise as a career.
Family Assembly
Appoints/ Elects
↕
Family Policies
Family Education
Information/ Communication
Family Council Board
Information/ Communication
Annual Family Meeting
About FBS Family Business Solutions Limited is a consulting organisation that works with family businesses throughout the UK and internationally. FBS’s consultants are widely recognised as the “go-to” experts when a business, or its family, want to address those issues peculiar to family businesses. Issues like succession planning with the next generation, family disharmony and how to work with your family and still enjoy your Sunday lunch.
21
↕
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74