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family business constitution

Do you know why Family Disputes cause terrifying damage to the Family Business &; its valuation?

It is because the Family Business is governed by strong ethos and family values, however, less attention is paid to the critical aspects such as Family Governance. Family Governance is the family constitution.

Some of the known family disputes that are reported in the news &; the public are:

  • Gautam Singhania
  • Kirloskar
  • Hinduja Brothers
  • Murugappa
  • Ambani Brothers

The Family Constitution is nothing but a translation of the intention of the family into a governing document that acts as a bridge between family members and business matters.

Predominant Benefits of Family Governance

  • Bridge the gap between family values and corporate governance
  • Addresses family business dynamics
  • Promotes transparency
  • Prevention of conflicts
  • Preservation of unity
  • Wealth Management
  • Accountability
  • Creation of legacy

Key Ingredients to Any Family Constitution

  • Family Vision
  • Governance Structure
  • Control & Management
  • Distributions
  • Capital Allocation

For any queries & clarifications please feel free to reach out on + 91 – 9819880244 or info@bsga.in

About the Author

CA Bhavin S Gala, a Practicing Chartered Accountant based out in the financial capital of India, Mumbai has a decade of work experience with SMEs in the areas of Succession Planning, Family Governance, Corporate Law, Strategic Advisor to the Promoters and value Management Consultancy Services.

Disclaimer

The views expressed herein are solely those of mine and not of my Firm nor those of the ICAI or any of its committees. The ICAI and my Firm do not accept any responsibility for omission or inadequacy of the contents in this document and for loss caused to any person who acts or refrains from acting in reliance on the contents of this document irrespective of the cause of / reason for the loss.

 

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