Family Constitution

A unified vision, family purpose, values, and documented guidelines designed
to pass the wisdom of the family and business legacy to all family members and future generations.

Craft a guide for your Family Business Legacy

A family constitution, also known as a family charter, is a written set of guidelines and principles that outlines the family values, mission, vision, and rules governing a family business & wealth across multiple generations.

It serves as a framework for managing relationships, resolving conflicts, and making decisions within the family enterprise.

A family constitution typically covers aspects such as ownership structures, leadership succession, communication protocols, conflict resolution mechanisms, and guidelines for family members' involvement in the business or management of family wealth.

Essentially, it helps the family work together smoothly and plan for the future.

Creating a family constitution
Creating a family constitution
Examples of Family Constitution
Examples of Family Constitution

( SPJIMR India )

37% of businesses experience tension and disagreements between family members due to unclear roles and decision-making business.

(KPMG India)

48% of family business members report high levels of stress & burnout due to conflicting family and business demands.
Fear of losing control, sibling rivalry, and unclear selection criteria create internal conflicts.

(Deloitte India)

Key Challenges of Family Business

As the family business grows into multiple generations with numerous members actively involved, maintaining transparency, effective communication, and sound decision-making becomes a challenge. This challenge can create cracks in the family bond and unity.

Family Charter
Family Charter
Need of family constitution
Need of family constitution
Importance of family constitution
Importance of family constitution

Different Visions, Goals, & Aspirations

Lack of Common Policies & Guidelines for Family Members

Unclear Succession Plan for Business & Family Wealth

broken heart hanging on wire
broken heart hanging on wire

Declining Family Bonds & Harmony

Importance of
Family Constitution

Running a family business comes with the unique challenge of juggling multiple roles as a family member, business manager, and responsible owner of family wealth. The constant navigation between personal and professional spheres can be complex, leading to potential conflicts and imbalances.

This is where a Family Constitution proves invaluable. By clearly defining roles, responsibilities, and expectations, the Family Constitution helps align all family members involved in the business towards common objectives. It establishes a structured framework for communication, decision-making, and capability building, ensuring a fair and balanced approach to ownership and family wealth management.

In essence, the Family Constitution acts as a compass, fostering transparency, communication, and the harmonious coexistence of family and business, contributing to the overall success and continuity of the family enterprise.

family constitution meaning & importance
family constitution meaning & importance

Key elements of Family Constitution

Family Constitution

  • Family Purpose

  • Family Vision

  • Strengthening of Relationship

  • Conflict Resolution

  • Education & Mentoring of family members

  • Privileges & responsibilities

  • Family Roles & Coordinators

  • Family fund & security

  • Family Retreat & Recognitions

  • Family Philanthropy

Business Constitution

  • Role & Responsibility

  • Vision & Business Goals

  • Family Relationship with business

  • Policies for Family Member employment

  • Ownership Structure & Succession Planning

  • Management Succession Planning

  • Funding & Supporting New Business Venture

  • Accountability, Compensation & Rewards

  • Decision Making

Core Purpose & Philosophy

  • Family Prayer

  • Legacy letters or Message from Founder

  • History & Origin of Family & Business

  • Family Values

  • Code of Conduct

  • Legacy Stories

  • Family Mission Statement

  • Family Legacy & Philosophy

Family Governance Process
Family Governance Process
The process is customised for every family based on their specific needs and objectives.
group of people having a meeting
group of people having a meeting
person wearing black watch holding babys hand
person wearing black watch holding babys hand
five men riding row boat
five men riding row boat


Greater Commitment in Family & Business
Improved Family Bond & Harmony
Improved Collaboration & Business Longevity

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IFBN Client's Testimonials