The Family Constitution: Agreements to Secure and Perpetuate by Daniela Montemerlo;John L. Ward

By Daniela Montemerlo;John L. Ward

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Additional resources for The Family Constitution: Agreements to Secure and Perpetuate Your Family and Your Business by Daniela Montemerlo (2005-02-01)

Sample text

A successful family business creates benefits that result in freedom , opportunity, and security for family members. • Being responsible owners is an ongoing learning process that benefits family members of all ages. • Family businesses are responsible to employees, business partners, the community at large, the private enterprise system, and past and future family generations. • Family businesses that strive to be role models for other family businesses benefit society by sharing their learning with others and by supporting and promoting private enterprise.

If the agreement incorporates the family business protocol, a family business consultant or advisor will be valuable both to facilitate and to lend expertise. Usually families find it difficult to facilitate themselves. An outside voice often assures broad and balanced contributions. There is also an acquired art to managing meetings. Consider these questions: Where to begin? How to organize the agenda? Whom to include? What to communicate throughout the process? These are often questions that a professional facilitator or outside advisor can help to answer.

The company president realized the need to clarify the rights and duties of shareholders and to share rules to protect the company in case some wished to sell their shares. For their part, the new family owners wanted to be guaranteed adequate information in shareholders' meetings and proper representation on the board of directors. This required both the shareholders and the board to adopt new systems for nomination and functioning. A Portuguese family ownership was composed of six shareholders (two founders and four children), none of whom held a majority.

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