A family charter is often treated as a statement of values. Its real job is more practical: it decides how the family and the business make decisions together.
What a good charter settles
- Who can work in the business, and on what terms.
- How shares can be passed on or sold.
- How the family council and the board relate to each other.
Settling these questions early, while relationships are good, prevents far harder conversations later. The best charters are short, reviewed regularly and signed by every adult family member.