In today’s world, family governance is important to address the commercial and technological challenges of our time: The world of finance is more complex than ever before. The world of work has grown more specialized and professional, and competition is ever increasing. Generally, matters become more and more complex and create the need for family governance for high net-worth families or family businesses to ensure a lasting future.
To this end, family governance serves as a steering, regulatory and communication mechanism to set forth the principles of participation and decision-taking within a family. It is meant to ensure stability, promote family unity, and preserve the family’s wealth in the long term. It provides rules, such as those regarding succession, communication within and outside the family, and rules pertaining to family members working in the business or managing its wealth. Good family governance provides a family with a structured framework and a clear organization, through bodies and instruments defined in advance.