The term Family governance is not immediately clear to most of us. Primarily family governance intends to cover how a family owned business is run once more generations get involved and/or more family members become active in the investments. How can a family define itself and sustain its essence for more than three generations?
Ahmadoff Family Office assists in the design, implementation and annual facilitation of Family Governance systems. We will work in partnership with you to create or review your family business governance structure and family constitution by the creation of a historical family biography, development of Family’s Mission/Vision/Values Statement. In Ahmadoff Family Office, we believe Family Governance is a dynamic "social contract" among family members who acknowledge specific shared family goals and values by which each voluntarily agrees to abide.
For example, some families hold an annual Family Assembly meeting, timed to coincide with the company’s AGM, which is intended to ensure that all family members are kept in touch with what’s happening in the family business and in the lives of their relatives. The formal role of a Family Assembly can include creating policies that govern areas where the distinct interests of family members and the business overlap and which can often be the source of conflicts.
FAMILY LEGAL ARCHITECTURE
Family ownership gives a rise number of issues to resolve, such as title or beneficial ownership, use of trusts, companies and foundations, choice of jurisdictions, emergency legal flexibility and so on. We advise our clients to build or revise their legal map of assets and current or future owners to adopt optimal way to move forward in different scenarios.
FINANCIAL POLICY SETTING
Financial interests are potential ways of conflicting in most families, if not settled before. We advise our clients to define rules of selecting potential beneficiaries of wealth, income and power and building pathways between them to move from one type of beneficiary to another one.
FAMILY CONSTITUTION AND CHARTER
A family constitution is a document which specifies the relationship between the business and the family and sets out the roles, compositions and powers of the key governance bodies of the company, that is to say, the family members, the shareholders, the management and the board of directors.
FAMILY COUNCIL AND ALTERNATIVE COMMITTEES
Family councils are an important vehicle of communication for every family business. Family members need to know what guiding principles will steer the overall management processes, as well as understand other family members’ expectations about the current and future management and ownership of the family business. Alternative committees may be established for specific interests of the family or a wealthy individual such as, Philanthropy Committee, Family members' Education Committee, etc.
- Translating the outputs of governance discussions into written form
- Develop goals and strategic initiatives consistent with Mission/Vision/Values of family
- Building systems to support the development of capable owners
- Formulate leadership development and training program
- Formalized governance for inter-generational issues
- Coach, train and mentor successor generation family members
- Resolve conflicts between generations and branches of the family
- Establishing guidelines for family meetings (to discuss business, as well as family matters)