Family Office Governance
Discover the role of family office governance in the management of increasingly complex families, understanding the necessity for firm foundations for vehicles, ensuring they aren’t prone to issues when placed under stress from internal or external factors. These foundations can be established through solid rules and procedures, allowing the family office to run smoothly and reduce disruption caused through disagreements or a lack of clarity around the operations of the office.
The two main pillars of good governance are outlined;
Pillar 1 – The Family Constitution
A collective mission – establish a clear vision for the future of the family wealth.
Flexible & responsive to change – allows the continuation of the office when placed under stresses, such as family change & geo-political issues.
Clear communication channels – enabling decisions to be made with all relevant opinions heard.
Succession Planning – ensure families are ready for the next generation to take the reigns.
Management board – for families who have incorporated, the day-to-day management needs an experienced team.
Pillar 2 – Institutions and Structures
Family Council – maintaining direct contact with the family members and ensure the management board are kept up to date.
Additional Layers – to give additional focus to specific areas.
