Family governance refers to a structured system of shared decision-making designed to help owning families manage their wealth, enterprises, and relationships across generations. It typically involves coordination between a board of directors and a family council, ensuring that both business and family interests are aligned while maintaining long-term continuity and stability.
A central element of this framework is the Family Constitution (or Family Charter), which formally articulates the family’s vision, guiding principles, and core values. It serves as a reference document that defines how family members interact with one another, with the business, and with ownership structures. In addition, it often includes agreed rules on governance, succession, and conflict resolution, helping to preserve cohesion and clarity across generations.
Complementing this framework are supporting mechanisms such as family employment policies that set clear criteria for family members seeking roles within the business or family office, as well as ownership structures that safeguard effective control and decision-making. The inclusion of experienced non-family executives further strengthens professional management standards, ensuring that the enterprise is led with objectivity, discipline, and operational excellence.