Create your own Family Constitution
A family constitution is a record of policies developed by the family in conjunction with their independent adviser. These policies are consistent with the family’s values and beliefs and, as a result, establish the parameters for the family’s interaction with the family business(es) and other family capital. As the number of stakeholders increases in a family business so does its complexity. A family constitution can be a way of managing that complexity and can also educate your next generation to understand the family’s expectations.
Create a family constitution or charter for the sustainability of your family and its business interests across the generations. This is a non-binding document that sets out the family’s policies for achieving family harmony and maintaining wealth. We would strongly recommend that you seek an independent advisor to help you through this process. Family Constitutions take a lot of thought and time to get right, and its success will depend on how inclusive and collaborative you are as a family as you discuss and debate policies such as your investment strategy, exit policy and family employment.
Access our Constitution created in conjunction with Cleardocs here.
Not sure if a family constitution is necessary for you? Have a read of our article which outlines 6 reasons why you should write your family constitution.