Presentation on Governance

8/6/2019 Presentation on Governance

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CONTENTS GOVERNANCE

FLOW OF GOVERNANCE

INFORMALITY TO FORMALITY

FAMILY GOVERNANCE

FAMILY COUNCIL

ISSUES IN MEETING OF FAMILY COUNCIL

FUNCTIONS OF FAMILY COUNCIL

FAMILY ASSEMBLY

FAMILY CONSTITUTION

PROCESS FOR PREPARE THE CONSTITUTION

CONSTRUCTION OF FAMILY CONSTITUTION

FAMILY CREED

FAMILY OFFICE


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GOVERNORS

BOARD / FAMILY COUNCIL /

OWNERS FORUM

EXECUTIVES

MANAGER /

FAMILY LEADER

BENEFICIARIES

SHAREHOLDER

FAMILY MEMBERS


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INFORMALITY TO

FORMALITY DURING THE FORMATION PHASE OF FAMILY

BUSINESS, GOVERNANCE IS NOT NEED NOT BE

FORMAL.

EVERY INFORMAL GOVERNANCE CAN PRODUCE

OUTSTANDING RESULTS.

HOWEVER, AS FAMILY SIZE INCREASES OR AS

BUSINESS GROWS, FORMALISING BECOMESNECESSARY WITH VARIATION OF PACE AND DEGREE


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SOME FACTS ABOUT GOVERNANCE

Governance is A roots in objectivity and independence

of the people.

Evaluation and accountability are critical to it.

Governance is a much wider term and includes setting

up of goals and targets.

Governance promote professional approach.

Governance focuses on developing an open

environment.

Government act as a innovation.


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FAMILY GOVERNANCE

FAMILY

COUNCIL

FAMILY

ASSEMBLIES

FAMILY

CONSTITUTION


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SOME ISSUES NEED FAMILY

GOVERNANCE Family business provide the joy of living and working

together.

Family members work with people who are very close and

important.

Family dynamics can result in negative feelings.

Family owners tend to neglect their family and usually take

family relations for granted.

Huge emotions are there.

Increment in family business work.


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FAMILY COUNCILAs a family grow, the need for managing them

increases.

Family members need to constitute a body thatis responsible to manage the affairs of the

family.

The family council should have one member electedper family branch.


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GOAL ENSURING INDIVIDUAL GROWTH.

ENSURING GROWTH OF FAMILY BUSINESS.

ENSURING SUCCESS OF GOVERNANCE PROCESS. FACILITATING SUCCESSION.

PROVIDING A PLATFORM FOR OPEN

COMMUNICATION.

CONFLICT RESOLUTION.

ENSURING CONTINUOUS LEARNING FOR FAMILY

MEMBERS.

SAFEGUARDING FAMILY WEALTH.


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FUNCTIONS FAMILY VISION AND MISSION

PREPARING FAMILY POLICIES

DEFINING ROLES, RIGHT AND RESPONSIBILITIES

IN FAMILY BUSINESS

MANAGING FAMILY BUSINESS, FAMILY

OWNERSHIP

PROVIDING FOR SECURITY OF FAMILY MEMBERS


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FAMILY ASSEMBLY Many families have a separate forum in form of family

assembly where they discuss issues that are of primary

concern to the family.

These forums are used to discuss business issues that

are important to the family.

They are likely annual general meeting of the

shareholders.

They are more informal than shareholders meetings.

Many aspects of family council as discussed above also

apply to family assemblies.


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FOUR COMPONENTS OF FAMILY

ASSEMBLYS

FUN

INCULCATION AND

ARTICULATION OF VISION AND

VALUES.

DECISION MAKING ON CRITICALISSUES.

LEARNING AND EDUCATION.


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FAMILY ASSEMBLY Analyzing business performance.

Election of family council members.

Report of the last council.

Items of agenda can also be invited from family members whowants a particular issue to be discussed.

Since children also participate in family assemblies, they learn

about family culture, family values and also about the business of

the family.

The assembly elects members of family council, and also sets theguidelines for the functioning of the council.


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THE PROCESS DISCUSSIONS ON GOALS, SCOPE AND

VALUES.

FACT FINDING.

PREPARING THE DRAFT.

DISCUSSION ON THE DRAFT.

FINAL DRAFT

ADOPTION

IMPLEMENTATION.


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CONSTRUCTION OF DRAFT INTRODUCTION.

PRINCIPLES.

VISION AND MISSION.

SYSTEMIC RELATIONSHIPS.

INTER PERSONAL RELATIONSHIPS.

OWNERSHIP AND MEMBERSHIP ISSUES.

ACTION PLAN.


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POLICIES

VISION AND MISSION STATEMENT

CONFLICT RESOLUTION POLICY

DECISION MAKING PROCEDURE

COMMUNICATION POLICY FAMILY COUNCIL RULES

MENTORING POLICY FOR YOUNGSTERS

CHARITIES AND ACTIVITIES RELATED POLICIES

POLICY FOR NON PARTICIPATING FAMILY MEMBERS

POLICIES FOR EXPENDITURE


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FAMILY CREED

FAMILY CREEDS ARE DCUMENTS THAT WORK AS

A GUIDEPOSTS IN TIMES OF CONFUSION AND

CRISIS.

THEY CAN ALSO BE CALLED A CODE OFCONDUCT

SEPARATES CREEDS CAN BE DEVELOPED FOR

YOUNGSTERS,SENIORS,MARRIED

COUPLES,WORKING MEMBERS ANDSHAREHOLDERS.


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FAMILY OFFICE

MAINTENANCE OF THE TAX RECORDS OF THE FAMILY

MEMBERS.

KEEPING TRACK OF FAMILY INVESTMENTS IN SHARES,

SECURITIES AND FIXED DEPOSITS. MAINTENANCE OF IMMOVABLE PROPERTIES.

DEVELOPMENT OF NEW BUSINESS OPPORTUNITIES.

RECORD AND UPKEEP OF FAMILY HISTORY.

MANAGING VARIOUS SOCIAL ACTIVITIES.

MANAGING FAMILY EVENTS LIKE MARRIAGE AND SO ON.


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CONCLUSION

FAMILY GOVERNANCE IS NECESSARY TO CODUCT

THE BUSINESS IN SYSTEMATIC FORMAT.

FAMILY GOVERNANCE PROVIDE HELP TO

CONTINUING A LONG RUN BUSINESS.

FAMILY GOVERNANCE PROVIDE A FLOW OF

WORK.

FAMILY GOVERNANCE HELP TO MAKE

REPUTATION IN THE MARKET.


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PRESENTERS

NISHA

REKHA

SUNITA

JITU

NITESH


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Presentation on Governance

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