"We support family businesses with their everyday challenges"
Every family plays a crucial role in the governance of its business. Over time, as the family grows through the next stages of its lifecycle, newer generations and members join the family business. This implies different ideas and opinions, expectations and wishes on the relations of the family in relation to the business and how the business should be run. Therefore, it becomes necessary to establish a clear family governance structure that will establish structures among family members, prevent potential conflicts, and ensure continuity of the business.
By introducing an efficient and functioning family governance structure FBA can help you achieve the following objectives:
- Increased communication of family values, and long-term vision to all family members.
- Keeping family members (especially those who are not involved in the business) informed about major decisions, business accomplishments, challenges and strategic decisions.
- Communicate the rules and decisions that might effect family member’s employee dividends, and other benefits they usually get from business • Establish formal communication channels that allow family members to share their ideas, aspirations and issues.
- Allow the family to come together and make any necessary decisions in a structured and professional way.
Developing such a governance structure will help build the necessary trust among family members (especially between those inside and outside of the business), therefore reducing the incidence of conflict and directly unifing the family thus increasing the chances of continuity across the generations.
FBA Family Governance Process
For larger and wealthier family business there could be the need to set up a Family office to assist the family in managing its wealth. For this purpose we create the strategy and structure to manage the family business as a group by balancing them with the needs of individual family members. We will look at continuously updating the Family agreements and constitution, Wealth and Legacy planning and other services that the family would require.
We organise and facilitate productive and effective family meetings including agreed agendas and timetables, taking minutes and suggest follow up actions.
We cover polices governing areas of importance to the family; such as education, philanthropy, new ventures, employment and remuneration of family members, entry and exit family shareholder strategies, and dividend policy amongst others.
Employing and Remunerating Family Members
We introduce new policies governing recruitment, training, career development & remuneration of family members.
Family Assembly and Family Council
A policy constituting the Assembly and/or Council and there implementation.
We organise forums for family members for social, educational & sometimes formal purposes.
We can also create a smaller representative body that helps organise the Family Assembly and may be granted the authority to represent the interests of the family in the wider governance of the family enterprise and being the link with the Board.