What is a Family Constitution?
The Family Constitution is a record of policies developed collaboratively by the family. The family may choose policies currently relevant to them while leaving others until later. They may also customise the details of the policies for the family's particular circumstances.
The Family Constitution helps families to:
focus on communications, development and harmony;
transition the stewardship and ownership of family wealth, including business interests, to the next generation; and
maximise benefits and manage complexities of being a family in business
What topics does the Family Constitution cover?
Having a Cleardocs Family Constitution in place allows the family to record, among other things:
the family's values and principles;
family aspirations for their business interests;
establishment of a governance structure;
decision-making and conflict resolution;
policies for important matters such as the employment of family members in the family business and education and development of family as current and future stewards;
overreaching investment strategy;
communication within the family and the business; and
liquidity and the entry into and exit from the family business
