Family companies are a common way of integrating family and business both valued among all people. In this regard, a specific organization has been formed connecting business effort of the members and ongoing seeking of the family's welfare with each other. The some advantages like sharing of promises, long – term investments and quick determination/action/decision which are all desired but unable to be fulfilled by the other enterprises than the family enterprises shall contribute to the success of business in case the families work together in a harmony.
Family Constitution states the common values, purposes, members and communication ways, interactions of the Family. This document is the "live" agreement which is subject to be changed if necessary in order to continue the inheritance of family successfully.
The process of forming of Family Constitution is initiated by families in order to build most proper and long term rules with regard to family and to the management and to the ownership of the family companies. Society strongly believes that the mentioned rules will support the family stay closer together and be pro-active in solving any potential problems or conflicts and will contribute to the integration of the future generations.
Consequently, Family Constitution is an intimate effort for running family business on an equitable and fair basis. To establish and maintain values of cooperation and team-work which are necessary for successful performance shall only be possible on the basis of serial organism.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.