Family Governance: Sample Family Constitution

A state-backed model constitution in nine parts covering ownership structure, shareholders council, management board, family talent policy, ownership transfer, conflict resolution, family council, family office and charity, with the date established from the publisher's own hosting path because no date is printed on the document. It sets nine special resolution thresholds as percentages of shares, from 51 per cent to elect the holding company chairman through 75 per cent to remove a director or approve a partial IPO, 90 per cent to sell the business or float it whole, and 100 per cent to pledge family shares. The future-generation holding company board is specified at five to seven directors with at least one third non-family, second generation members other than the chairman capped at 20 per cent of the board, a four-year term, retirement at 70 and deselection by a 75 per cent secret ballot of issued share capital, with dividends set at 20 to 30 per cent of net profit and share sales allowed in one annual window.