YourBusinessWithJamesCaan2016 - 51

PROMOTION

the business, it may be sufficient for these values
to be communicated verbally on a daily basis.

businesses managed by non-family members
or where there are a number of relatives not
working in the business, family councils are
useful, forming a link between the business
management team and the family.
As family business specialists, we have advised
many of our clients on the most appropriate
structure over many years.

Family constitutions
However, where the business is more complex,
a more formal approach may be required. This
may involve developing a constitution - a
written document setting out the family's values
and how they will conduct themselves with
respect to each other and the business. There
is no prescribed format for constitutions but
the family business team at PKF Francis Clark
has experience in a number of these. They are
not legally binding but can prove useful as a
reference in times of tension or conflict.

M O R E I N F O R M AT I O N
Call 01392 667000
Visit pkf-francisclark.co.uk

Shareholder and partnership
agreements
A shareholder or partnership agreement,
depending on the choice of business structure,
is very useful in addition to a family constitution,
and in contrast, is legally binding. For most small
to medium family businesses, this may be all that
is required, however, this does not bind family
members who are not business owners.

Family councils
Taking things a stage further, for very large family

Get formal documents
in place while the family
group is smaller - as it
increases in size so does
the potential for conflict

PKF Francis Clark is a trading name of Francis Clark LLP. Francis Clark
LLP is a limited liability partnership, registered in England and Wales
with registered number OC349116. Francis Clark LLP is a member
firm of the PKF International Limited network of legally independent
firms and does not accept responsibility or liability for the actions or
inactions on the part of any other individual member firm or firms.


http://pkf-francisclark.co.uk

YourBusinessWithJamesCaan2016

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