Crafting of the Family Constitution
by Mr. Ricardo Mercado and Atty. Romulo Ramirez
The longevity and continued success of any family business is hinged on the ability of family members-owners to maintain harmony among themselves and in relation with the business. Without such harmony, the family members-owners may not be able to agree on many issues which can affect the viability of the family business itself. Instead of concentrating on the business, the owners may be bogged down with family misunderstandings and personal issues.
One of the instruments in preserving family harmony is a document called Family Constitution. The Family Constitution contains rules and policies which are collaboratively developed by family members who are either owners or potential owners (heirs). The family shall decide on, among others, the qualifications for employment of family members, the dividend policies of the enterprise, and the retirement age.
The Family Constitution shall be crafted over a period of two continuous days. The Ateneo FBDC resource persons shall be on hand during the said two days to guide the family in the discussions of the various rules and policies that will be brought out by the facilitators who bring with them their experience of helping over 100 families craft their Constitutions.
Ten days from the end of the workshop, participants in the crafting shall receive via email a draft of the Constitution for their review and comments. Should the participants find the draft acceptable, then the family can schedule a formal signing of the document.
For families interested in finding out more about the Family Constitution, they should contact the Ateneo FBDC to schedule a briefing to be given by one of its resource persons. The briefing is a service provided by the Center free of charge.
One of the instruments in preserving family harmony is a document called Family Constitution. The Family Constitution contains rules and policies which are collaboratively developed by family members who are either owners or potential owners (heirs). The family shall decide on, among others, the qualifications for employment of family members, the dividend policies of the enterprise, and the retirement age.
The Family Constitution shall be crafted over a period of two continuous days. The Ateneo FBDC resource persons shall be on hand during the said two days to guide the family in the discussions of the various rules and policies that will be brought out by the facilitators who bring with them their experience of helping over 100 families craft their Constitutions.
Ten days from the end of the workshop, participants in the crafting shall receive via email a draft of the Constitution for their review and comments. Should the participants find the draft acceptable, then the family can schedule a formal signing of the document.
For families interested in finding out more about the Family Constitution, they should contact the Ateneo FBDC to schedule a briefing to be given by one of its resource persons. The briefing is a service provided by the Center free of charge.
