Do you wish to create a Common understanding between family members in relation to certain key issues? A Family Charter is likely to be particularly useful for those operating family businesses!

1) Problem or certain key issues in Family Business: The family has grown in size and the complexities in managing the business & families are rising...

i) Is there a general "mission statement" or overall understanding relating to the family - in any respect - which it would be helpful to record?

ii) Is there an expectation that certain family members should have particular responsibility for dealing with certain matters?

iii) What is the understanding around succession in terms of the management of the family business?

iv) How is wealth generated within the family business allocated?

v) Who can own the family business?

vi) How does decision-making and governance work in the family business?

vii) What are the expectations of family members who are engaged and/or begin cohabiting?

........many mores 

ii) How Family Business creates counter choice of problems

Burman Family: It took the Burmans 18 long months, including a couple of family off-sites in Kathmandu, Nepal, to discuss and finalise the family constitution they were drafting. This was sometime in 1997-98. 

Dabur Ltd, the company the family owned and managed, had already made a name for itself in the fast-moving consumer goods (FMCG) space with their Ayurveda-based products, and the family’s fifth generation was involved in the business. Promoter realised that for Dabur to grow rapidly there was a need to professionalise the management, and to attract the best managerial talent it was important to keep the top slot vacant 

iii) Outcome of Family Constitution or Charter:

A family constitution can bridge the gap between family and business values.

iv) Challenges

While the rationale for the need of a Family constitution or charter is clear, not many families put it in writing & face lots of family-conflicts even on petty issues & jeopardize the long family legacy! Isn't it true?

v) Power of Counter choice to challenges, is way to greatness:

The most important questions you must understand:-

1. Why is the Family constitution/charter required?
2. Who requires the most?
3. Likely coverage in the Constitution/ charter?
4. Why do most charters fail?
5. Actually, How to extract exceptional benefits the family hopes for?