Starting a Family Business
Not sure where to start when creating your family business policy? Here are the basic essentials included in most.
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If you're writing a family business policy, include:
- A mission statement
- A policy on how important decisions are made
- A method for handling disputes
- A determination describing how and when children or other family members can enter the business
- A method for family member performance evaluations
- A mechanism and process for selecting a successor
- A way of ensuring adequate communication among family members (even those not in the business)
- A policy on compensation for family members working in the business
- A shareholders' agreement
- The role of nonfamily senior managers
- The rights and responsibilities of shareholders, directors and family managers