1. Family Council
Purpose and Objectives
What is a Family Council?:
A Family Council is the forum where all family members can discuss family issues, preferences
and objectives outside the constraints of the business. This forum is for the informing the family
members NOT involved within the business as to the performance of the business and how this is
benefiting them.
All family members need to be involved in the Family Council regardless of age, desire to be
involved in the family business, their current or historic involvement in the family business or their
shareholding of the assets held by the Family Business.
Purpose of a Family Council:
The Family Council has the clear purpose of informing in both directions i.e. business back to the
family AND family into the business, from the perspective of “what’s good for the business is good
for the family. However this is not its only purpose as the Family Council has a range of purposes
including BUT not limited to;
 Development and ongoing review of the Family Charter
 Provision of views and perspectives on shareholding and dividend policy
 Identify and maintain focus of the family’s core values (not negotiables)
 Preserving, enhancing and respecting the family legacy (what the family is known for)
 Discuss and respect the development of
 Wills
 Powers of Attorney
 Advanced Health Directives
 Pre-Nuptial Agreements
 Discuss, understand and respect all family members’ personal wealth creation objectives
 Guide and mentor the “next generation” as to the value and strength of the Family
Business
 Resolve family issues and disputes in a forum that does not interfere with the business
operations
 Understand the strategy and future direction of the Family Business and to have an arms-
length involvement and influence in these areas
 Guiding the culture and reputation of the family and the business
Objectives of a Family Council:
A successful Family Council has the clear objective of ensuring all family members are engaged
fully and they have the ability to express their opinions, perspectives and expectations as well as
being able to put difficult issues on the table for discussion. The Family Council holds
responsibility for the Family Charter and ensuring that non-business events and issues are
managed in a forum that does not undermine the performance of or adversely impact on the
business.
Enhancing the family’s reputation and culture by upholding the family values and preserving the
family’s legacy is the critical objective of the Family Council. Finally, the Family Council is the
platform to educate all family members that they are the Steward and Custodian of the family’s
sustainability.