Family Business Governance Centre Organizes a Lecture on Family Constitutions

The lecture attended by FBGC members, businessmen and a host of interested individuals in the field of family business tackled in details the experiences of families in establishing their own constitutions in running their businesses 

AMMAN----July 8, 2013----- The Family Business Governance Centre (FBGC) organized a lecture entitled "Family Constitutions" by Mr. Luay T. Abu-Ghazaleh, FBGC's founder at the Talal Abu- Ghazaleh Knowledge Forum.

The lecture attended by FBGC members, businessmen and a host of interested individuals in the field of family business tackled in details the experiences of families in establishing their own constitutions in running their businesses. 

"Each family, business, hierarchy, situation, experience and history is different and you cannot take one family’s constitution and apply it to another," Mr. Abu-Ghazaleh said.

"There are several different terms (family agreements, charters, compacts, owners’ or partners’ agreements, protocols or constitutions) used to describe a written document that operationalizes a business family’s values and expectations for its family and business relationships," he added.

According to Abu-Ghazaleh, family governance addresses the needs and demands of families and businesses.

"Family governance creates clear family expectations, reduces tension in the family, supports family unity and creates general guidelines rather than specific decisions. Meanwhile, it can assist business in concentrating  on key issues and business opportunities, supporting sound decision-making, reducing family threats to the business and strengthening accountability," he said.

Mr. Abu-Ghazaleh focused on family values such as communication, disclosing information and family member rights, responsibilities and the mechanism of decision-making in addition to family management policy stressing on the fact that "Family members are not by default executives in the firm."

He also tackled in details the issue of ownership and family nominations to boards saying:" Family council develops a talent bank and proposes candidates based on talents and interest."

At the end of the lecture, Mr. Abu-Ghazaleh presented several suggestions and ideas based on his own personal experience as the Vice President of Talal Abu-Ghazaleh Organization on various issues related to family business.

About Family Business Governance Center

The Family Business Governance Center (FBGC) is a nonprofit organization dedicated to promoting awareness about the important role played by family businesses in the international economies. The FBGC is the work of a group of family business owners who share a host of qualities and aspirations for a better future for the next generation of business leaders.