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

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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.

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