For a family business to be conducive to proper business governance, the roles of each relevant family member pertaining to the business and their respective impacts must be taken into consideration and acted upon accordingly.
One way that adequate business governance can be implemented to account for each family member is by the establishment and utilization of a family council. By way of the family council, each family member’s input can be taken into consideration, allowing a path more conducive to proper governance to be created and taken.
Guidelines that correctly separate business alliances and interpersonal relationships need to be established as well. Assuming the relevant family members are on good terms, their respective business and personal ties will be closely intertwined - and this is likely to hinder the overall performance of the family business.
A clear delineation between family members who are shareholders and those who are not must also exist. Family members who own shares in the family business must have their rights and privileges as shareholders clearly defined and upheld. Finally, family members who are not part of the business in any way should not be allowed to interfere with the business’s operations.
There should not be a misguided sense of obligation towards other family members uninvolved with the family business - a point which many family business owners have ignored at their own risk.
When you work with Evoque Advisory, you can be certain that every family member who’s relevant to your family business will have their roles and requirements addressed accordingly - leading to significantly positive outcomes regarding not only the business, but through it the family wealth and legacy as well.
Please contact us at enquiry@evoqueadvisory.com to request a consultation or address any other relevant matter.
