A family council has a very important role in developing governance practices for family-run businesses. This role becomes even clearer as the number of generations involved in a company’s operations increases and, consequently, so does the number of family members with interests in the company.
When this happens, companies realize they need to build a separate forum to discuss and make corporate decisions, whether strategic or operational, in such a way that family members (partners) have an appropriate and professional environment to discuss matters of their particular interests.
One of the most important roles of the committee is to monitor and preserve family values, which need to be understood and prioritized when conducting the company’s business.
Our senior partner provides comments on this matter in the video below: