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CONTENTS GOVERNANCE
FLOW OF GOVERNANCE
INFORMALITY TO FORMALITY
FAMILY GOVERNANCE
FAMILY COUNCIL
ISSUES IN MEETING OF FAMILY COUNCIL
FUNCTIONS OF FAMILY COUNCIL
FAMILY ASSEMBLY
FAMILY CONSTITUTION
PROCESS FOR PREPARE THE CONSTITUTION
CONSTRUCTION OF FAMILY CONSTITUTION
FAMILY CREED
FAMILY OFFICE
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GOVERNORS
BOARD / FAMILY COUNCIL /
OWNERS FORUM
EXECUTIVES
MANAGER /
FAMILY LEADER
BENEFICIARIES
SHAREHOLDER
FAMILY MEMBERS
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INFORMALITY TO
FORMALITY DURING THE FORMATION PHASE OF FAMILY
BUSINESS, GOVERNANCE IS NOT NEED NOT BE
FORMAL.
EVERY INFORMAL GOVERNANCE CAN PRODUCE
OUTSTANDING RESULTS.
HOWEVER, AS FAMILY SIZE INCREASES OR AS
BUSINESS GROWS, FORMALISING BECOMESNECESSARY WITH VARIATION OF PACE AND DEGREE
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SOME FACTS ABOUT GOVERNANCE
Governance is A roots in objectivity and independence
of the people.
Evaluation and accountability are critical to it.
Governance is a much wider term and includes setting
up of goals and targets.
Governance promote professional approach.
Governance focuses on developing an open
environment.
Government act as a innovation.
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FAMILY GOVERNANCE
FAMILY
COUNCIL
FAMILY
ASSEMBLIES
FAMILY
CONSTITUTION
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SOME ISSUES NEED FAMILY
GOVERNANCE Family business provide the joy of living and working
together.
Family members work with people who are very close and
important.
Family dynamics can result in negative feelings.
Family owners tend to neglect their family and usually take
family relations for granted.
Huge emotions are there.
Increment in family business work.
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FAMILY COUNCILAs a family grow, the need for managing them
increases.
Family members need to constitute a body thatis responsible to manage the affairs of the
family.
The family council should have one member electedper family branch.
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GOAL ENSURING INDIVIDUAL GROWTH.
ENSURING GROWTH OF FAMILY BUSINESS.
ENSURING SUCCESS OF GOVERNANCE PROCESS. FACILITATING SUCCESSION.
PROVIDING A PLATFORM FOR OPEN
COMMUNICATION.
CONFLICT RESOLUTION.
ENSURING CONTINUOUS LEARNING FOR FAMILY
MEMBERS.
SAFEGUARDING FAMILY WEALTH.
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FUNCTIONS FAMILY VISION AND MISSION
PREPARING FAMILY POLICIES
DEFINING ROLES, RIGHT AND RESPONSIBILITIES
IN FAMILY BUSINESS
MANAGING FAMILY BUSINESS, FAMILY
OWNERSHIP
PROVIDING FOR SECURITY OF FAMILY MEMBERS
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FAMILY ASSEMBLY Many families have a separate forum in form of family
assembly where they discuss issues that are of primary
concern to the family.
These forums are used to discuss business issues that
are important to the family.
They are likely annual general meeting of the
shareholders.
They are more informal than shareholders meetings.
Many aspects of family council as discussed above also
apply to family assemblies.
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FOUR COMPONENTS OF FAMILY
ASSEMBLYS
FUN
INCULCATION AND
ARTICULATION OF VISION AND
VALUES.
DECISION MAKING ON CRITICALISSUES.
LEARNING AND EDUCATION.
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FAMILY ASSEMBLY Analyzing business performance.
Election of family council members.
Report of the last council.
Items of agenda can also be invited from family members whowants a particular issue to be discussed.
Since children also participate in family assemblies, they learn
about family culture, family values and also about the business of
the family.
The assembly elects members of family council, and also sets theguidelines for the functioning of the council.
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THE PROCESS DISCUSSIONS ON GOALS, SCOPE AND
VALUES.
FACT FINDING.
PREPARING THE DRAFT.
DISCUSSION ON THE DRAFT.
FINAL DRAFT
ADOPTION
IMPLEMENTATION.
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CONSTRUCTION OF DRAFT INTRODUCTION.
PRINCIPLES.
VISION AND MISSION.
SYSTEMIC RELATIONSHIPS.
INTER PERSONAL RELATIONSHIPS.
OWNERSHIP AND MEMBERSHIP ISSUES.
ACTION PLAN.
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POLICIES
VISION AND MISSION STATEMENT
CONFLICT RESOLUTION POLICY
DECISION MAKING PROCEDURE
COMMUNICATION POLICY FAMILY COUNCIL RULES
MENTORING POLICY FOR YOUNGSTERS
CHARITIES AND ACTIVITIES RELATED POLICIES
POLICY FOR NON PARTICIPATING FAMILY MEMBERS
POLICIES FOR EXPENDITURE
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FAMILY CREED
FAMILY CREEDS ARE DCUMENTS THAT WORK AS
A GUIDEPOSTS IN TIMES OF CONFUSION AND
CRISIS.
THEY CAN ALSO BE CALLED A CODE OFCONDUCT
SEPARATES CREEDS CAN BE DEVELOPED FOR
YOUNGSTERS,SENIORS,MARRIED
COUPLES,WORKING MEMBERS ANDSHAREHOLDERS.
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FAMILY OFFICE
MAINTENANCE OF THE TAX RECORDS OF THE FAMILY
MEMBERS.
KEEPING TRACK OF FAMILY INVESTMENTS IN SHARES,
SECURITIES AND FIXED DEPOSITS. MAINTENANCE OF IMMOVABLE PROPERTIES.
DEVELOPMENT OF NEW BUSINESS OPPORTUNITIES.
RECORD AND UPKEEP OF FAMILY HISTORY.
MANAGING VARIOUS SOCIAL ACTIVITIES.
MANAGING FAMILY EVENTS LIKE MARRIAGE AND SO ON.
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CONCLUSION
FAMILY GOVERNANCE IS NECESSARY TO CODUCT
THE BUSINESS IN SYSTEMATIC FORMAT.
FAMILY GOVERNANCE PROVIDE HELP TO
CONTINUING A LONG RUN BUSINESS.
FAMILY GOVERNANCE PROVIDE A FLOW OF
WORK.
FAMILY GOVERNANCE HELP TO MAKE
REPUTATION IN THE MARKET.
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PRESENTERS
NISHA
REKHA
SUNITA
JITU
NITESH
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