Defective family constitutions are dangeroushome/Business/Business Columns/Defective family constitutions are dangerousLast of two partsFAMILY business expert and professor John Ward defines a family constitution as “a comprehensive articulation of philosophy, principles and policies for the future that balances and synthesizes the welfare of the family, owners and the business. It is among the most important steps a business-owning family can take to secure and strengthen its business and, most preciously, its family.” He adds that the two most effective practices implemented to protect and preserve the family business are creating an independent board to strengthen the business and drafting a family agreement to strengthen the family. We felt we can help family members diffuse the tension when the conflict is still in its early stages. The next-generation family members have growing needs and we do not know if the senior-generation members are aware. To conclude, a well-crafted family constitution that goes beyond two to three generations toward the future can perpetuate a family business for a long time.

Source: Manila Times September 28, 2019 16:20 UTC