By Daniela Montemerlo;John L. Ward
Designed for households making plans to draft a kinfolk contract, households determining even if to start the method, and those who have already demonstrated a relations contract, this publication illustrates the elemental elements and their value to the luck of the kinfolk business.
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A big apple occasions impressive Book
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Additional info for The Family Constitution: Agreements to Secure and Perpetuate Your Family and Your Business
Sample text
CONCLUSION Family agreements can include family values, family business principles, and business and ownership policies. Contents must be internally consistent, and consistency should be maintained over time. Chapter 5 It's the Process that Matters W e believe the process of developing the family agreement is more important than its contents. Our experience indicates that there are various types of family agreements with differing contents. A family agreement mayor may not be successful. Chapter 7 will illustrate that most criteria for success are related to the process of developing the document, not to the document's philosophies, principles or policies.
For their part, the new family owners wanted to be guaranteed adequate information in shareholders' meetings and proper representation on the board of directors. This required both the shareholders and the board to adopt new systems for nomination and functioning. A Portuguese family ownership was composed of six shareholders (two founders and four children), none of whom held a majority. They had three companies and operated in different industries: wine, real estate, and tourism. With three managing owners leading different businesses and ownership becoming more fragmented in the next generation, the family agreed to create a family holding company that controlled the three operating units, and to assign the three subsidiary presidents higher equity stakes in the companies they managed.
Managing complexity requires a systemic view of family business issues. "Just" acting on company, family, or ownership might not be enough, as the three variables are interrelated. For instance, as the family grows, ownership may be spread among more people; in turn, extended ownership can affect company expansion or diversification. A proactive attitude is fundamental to anticipate the evolution of a family company in all its facets and all its dimensions as happened to a Massachusetts family.
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