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Maintaining family control of the business, compensating family members involved in the business and resolving conflicts among family members were the issues highlighted in a survey of family owned businesses undertaken by Family Business Australia and accounting practice, KPMG.
It is these challenges (among others) that are most effectively dealt with through formal business and family governance structures such as the board of directors and family council, but only 34% of family businesses have a formal board of directors or governing body.
A two day course designed to educate family members and non family directors in their role as directors of a family business has been commissioned by Family Business Australia (FBA), the peak body for family owned businesses.
The course has been developed for FBA by the Australian Centre for Family Business (ACFB), under the guidance of Professor Ken Moores, and presenters will include academics and highly regarded, experienced family business directors.
"It is these governance mechanisms which effectively focus a family owned and operated business on dealing with the issues which will ensure its longevity and long-term success", said Prof Moores.
FBA's National Chairman, Richard Owens OAM has sent a letter of invitation to all members of the organisation, encouraging them to take advantage of the offering. "Regardless of the size of your family company, or the size of your board - or even if you don't at this stage have a board, this course is a must for anyone aiming to grow their family business, and keep the family communicating effectively", said Mr Owens.
"It is important, even for those using advisers and trusted friends, to ensure that all are aware of the role of a director or even those `deemed to be a director' by their involvement at a strategic level.
"Ad hoc collections of advisers, friends and/or family members are common place in family business and can often be formalised to enhance their effectiveness".
FBA's Directors' Course will be relevant and useful to executive and non-executive board members, as well as non-family members joining a family company board.
The presence of non-family, non-executive board members can add significant, objective value to the board without impacting on the executive control of family board members.
Visit our website for more information - www.fambiz.org.au |
