STEP Northern Event, Leeds
Yesterday afternoon I had the pleasure of speaking alongside Ian Marsh, familydr, at a Society of Trust and Estate Practitioners (STEP) seminar on the benefits a Constitution can bring to a family. The discussion highlighted the importance of the process over the document itself – of open discussions, building trust, becoming more involved and aligning your vision.
Some areas that may be covered in a Constitution are:
- The ownership values and vision for the business;
- Share ownership policies and principles;
- Family communication methods and how disputes are settled;
- Family employment principles;
- The relationship and communication between the family shareholders and the Board.
Family Constitutions are not usually legally enforceable but they demonstrate that the family is taking governance seriously. They help to bring clarity on key issues, open up communication and reduce the potential for future disputes in the family.