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Policy and Taxation Group
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By Director, Anna Johnson and Managing Director, Rachele Bouchand, Pathstone, the modern family office.
Supporting family businesses is an important segment of Pathstone’s offering, and while each family’s situation is unique, our experience has yielded a few ideas every family should consider. A founder of a family business is often not only the driving force behind that business but also the steward for the family’s trusts, philanthropy, property, and, ultimately, the family legacy. Like the spokes of a wheel, all of these interests together make up the family enterprise. As the next generation is brought into the management of this enterprise, most families will benefit from the skills, exercises, and practices that help to ensure the transition proceeds smoothly. Families successful with these transitions often use a third-party resource, such as Pathstone, to guide them through this process to encourage a thoughtful and unbiased approach.
Considerations on Establishing Family Governance
Below is an outline of our ideas to consider:

Managing diverse goals and priorities: Each family member will have their own goals and priorities, which means that each participating family member will need to be able to manage diversity of thought.

Defining shared values and goals: Although family members may have different views, the family must ultimately come together to move the family forward.

Drafting a Family Mission Statement: Once the family has consensus on shared values and goals, this vision can be crafted into a Family Mission Statement which documents what the family is working toward.

Developing a Family Constitution: As ownership and control transfers beyond the founding generation, the family will need a governance structure which defines how decisions are made and by whom.

Board of Directors. The Board of Directors oversees the family business. The board provides guidance to management, is involved in decision-making, and provides oversight.

Family Council. The Family Council is made up solely of family members. The council develops policies and procedures to preserve the family legacy and values, and acts as advisor to other family members.

Family Assembly. A Family Assembly is a structured family gathering. The event may include an update on the family business and other family ventures, a vote on any new or changing policies or procedures, an educational component, and family activities to foster a continued connection.

Family Office. The Family Office supports the family in all the above endeavors.
Read the full article, "Considerations on Establishing Family Governance", from Pathstone, the modern family office.
About Pathstone
Pathstone is an independently operated partner-owned advisory firm, offering families, family offices and select nonprofit institutions comprehensive family office services and customized investment advice. Pathstone’s objective is to help clients create, manage and preserve wealth across generations. Pathstone integrates smart innovative programs with its traditional family office services to provide solutions that withstand the test of time.
Stay safe and healthy,
Pat Soldano
[email protected]
712 H Street NE Suite 1091
Washington DC 20002
(202) 681-8365

Upcoming Events

  • October 12: Institute for Family Owned Business, ME
  • October 13: HTI, Rosemont, IL
  • October 14-16: Chattanooga Motor Festival, TN
  • October 19-21: Opal Family Office & Private Wealth Forum West, Napa Valley, CA
  • October 20 - Institute for Family Owned Business, ME
We hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…

As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a supporter.

The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That’s why Policy and Taxation Group is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill.

About Policy and Taxation Group
Policy and Taxation Group is your voice in Washington on economic freedom. We advocate for policies that allow American families to fully enjoy the economic liberties and benefits of a robust free market unique to our nation. For over 25 years, we have been the loudest voice in the nation’s capital on eliminating the death tax. This ill-conceived tax has a destructive impact on families, family businesses, job creation, and the national economy.
Have questions or would like more information about becoming a Supporter or donating? Please contact John Marino at [email protected].
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