Family Constitution & Corperation of Family Relations Road Map

The Purpose

The main purpose is to determine rules interaction and organizing policies between family relations and company activities and is to define implementation Fundamentals.

Put into practice the Family Constitution as an integral part of corporate culture

Open and fairly definition of rules to avoid potential conflicts of interest and to determinate of rules look after the counterparties' own interest

Preventing to harm company between family members relationship causing conflicts.

Road Map of Family Constitution Preparation

The preparation of the Family Constitution consists of the following steps:

  • Pre-assessment Analysis
  • The Scope and Preparation of Constitution
  • Implementation

Pre-assessment Analysis

  • Observation of family members relations
  • Observation of management and decision-making processes
  • Observation of financial processes
  • Observation of structure that provides to report of target and work results that determines family
  • Observation of current rules and responsibles for institutionalization of family relations

The Scope and Preparation of Constitution

  • General Provisions
  • Responsibilities of Family Members and Principles of Governance
  • Preparation of next generation and maintaining of continuity
  • Administrative Structuring
  • Property
  • Adjustment of Revenue and Expenditure of Family Members

General Provisions

  • Justification
  • Purpose
  • Principles
  • Family and Corporate Culture
  • Traditions and Values of Family
  • Ethical Rules
  • Vision of Family
  • Relations between Family Members
  • Sanctions about obeying the Constitution
  • Resolution of disputes

Responsibilities of Family Members and Management Principles

  • Family and Business limits
  • Relations between Family Members
  • Identification and Measurement of Competencies of Family Members
  • Position-Based Competency Definitions of Family Members
  • Role of Family Members in the Executive Board
  • Selection Criteria of Successor
  • Limits of Authority and Responsibility Areas of Family Members
  • Separation of Family and Business Target
  • Identification and Measurement of Performance Criteria of Family Members
  • Relations with Professional Managers

Preparation of Next Generation and Maintaining of Continuity

  • The duty of family members in professional management
  • Planning the Development of Family Membership Administrators
    • Job rotation and career planning
    • Training and Development Planning
    • Assignment Professional in External Company

Administrative Structuring

  • Family Meetings
  • Establishment and Membership Conditions of Family Council
  • President of the Family Council and Presidency Conditions
  • Decision Making, Meeting and Agenda in Family Council
  • Activities of Family Council
  • Working of Members of Family Council in other jobs
  • Family Council Criteria of Paying Dividend
  • Selection of the Chairman and Members of Executive Board
  • Working of the Chairman and Members of Executive Board in other jobs
  • Relations of Family Council and Executive Board


  • Property of Family Corporations
  • Disposal of Family Corporations
  • Allocation of company shares to family members
  • Procedures of Share Transfer

Adjustment of Revenue and Expenditure of Family Members

  • Revenue of Family Members
  • Expenditure Rules of Family Members