For a large family business now in the 2nd and 3rd generation of owners, NECG worked with the majority shareholder, chairman and CEO in preparing the Family Constitution. The Constitution covers 1) Mission, vision and values of the family, 2) Ownership principles: Shareholders’ rights and responsibilities, Equity distribution and voting rights, Transfer of shares and liquidity needs, Return on investments and dividends distribution, 3) Family Governance: Role of the family members, Employment of the family members in the family business, Compensation of the family members, Family Office, 4) Business Governance: Decision-making mechanisms, Boards of Directors (Role, decision rights, composition, outside directors, eligibility and selection of Directors, board committees, Chairman of the Board), and conflicts of interest.
May 2, 2014