Family Governance & Charters

Family businesses and high wealth families are much more complex entities than their non-family counterparts. While the business system is based on contractual relationships, with its outward-looking, focus on targets and results; the family system is often emotion-based and inward-looking. Business systems seek to make the most of change; family systems seek to minimise it.

BDO has worked extensively to help families understand and manage the systems of governance that will help predict, prepare for and mitigate their risks.

Governance structures in family business

By establishing a governance structure, the boundary between family and business is clarified. It helps the family develop a cohesive approach to asset management, investment decisions and business interests, which can help combat any tensions. This helps manage expectations by giving everyone a better understanding of their roles and responsibilities in the family structure.

How BDO can help

Preparing a family charter requires commitment and communication from everyone involved. Often the process and discussions are more valuable than the final document, creating greater clarity and understanding within the family.

A family charter improves governance and details the policies and structures that enable the family and the business to operate independently and prosper in harmony. The types of issues that charters typically deal with include:

• Vision, mission and values
• Management philosophy and objectives
• Share ownership
• Family councils, employments and meetings
• Philanthropy
• Communication
• Succession planning.

Find out how we can help bring greater clarity and structure to your family business. Get in touch today.