The Secret of having Long Life of Corporations that Work with Dynamics for Development Management Centre:
“Family - Partnership Constitution”

“Verba volant scripta manent Spoken words fly away, written words remain...” - Latin Proverb

Many Family Businesses would have been still continuing their lives if they had a Family-Partnership Constitution that had an agreement on written standards...

Family-Partnership Constitution is the document that defines the way of working together between members of Family or Shareholders, and details relations between every shareholder. It is the best idea that there is a source of guidance to prevent corporations from delaying and having inner conflicts against the structure of fragile articles that are in need of solutions and incapable of improvising.

In the case of, corporations not having a family-partnership constitution, they are fragile against a disagreement in the management that they are facing for the first time, and parties having different ideas. These kinds of risks make family-partnership constitution necessary. It is only possible for an organization to not operate and act randomly but in a specific scheme of rules if there are proactively predefined terms and conditions.

The main difference between the constitution and partnership agreement that we prepare, and other partnership agreements, are the scope of multifaceted measures that are defined by DD experts. An agreement environment that creates solutions against every possible situation, is formed with not only this wide content but also requests and additions from you that are checked according to subjects, by our experts. The partnership constitution that contains articles to specific scenarios of cases that are defined by our customers; is specialized to our customers, corporations, and in the legal sense, it is a personalized manual.

It is crucial for a constitution to be prepared by an independent and professional team against the possibility that the board of shareholders is biased and not objective because they are inside the corporation. In this context, the text that is prepared by our consultants; will be the guide that prevents future possible problems, and is prepared with all the family members/shareholders to clarify and solve all the issues above.

In every corporation there are issues that concerned parties avoid talking about them.

As DD, we bring these issues to the light for you as an impartial participant.

For the constitution, you only sit once at the table.

And when you get up from the table all the problems that even did not come to your mind will be solved and decided.

However, if you do not have a constitution, it is not possible to get up from the table.

With the Family-Partnership Constitution Work that will Organizes how Corporations Operate and Act;

Expand the Lifespan of Your Corporation

Prevent Conflicts and Comfort how it Operates

Ease the Adaptation to Changes

Prevent Disagreements between Shareholders without being a side

For a comprehensive constitution to be prepared all the issues that shareholders avoid, should be discussed and all the fundamental principle should be determined today:

• Fundamental principles that should be followed by every shareholder; rights of shareholders,
• Working fundamentals of General Meeting and Board of Directors,
• Dividend – profit distribution – capital increase policies,
• Entering board of shareholders, share transfer, separation conditions,
• Working conditions for shareholders and their relatives,
• Status and rights of the shareholders that are working and non-working,
• Taking strategic decisions,
• Acquisition of property principles on behalf of the corporation,
• Retirement principles, and status of retired partners,
• Things to do in case of unexpected, instant decease,
• Protecting rights of minorities,
• Prohibition of rivalry,
• And all the possible and controversial issues that are specific to the corporation.

The Process of Family - Partnership Constitution in DD

The process below is designed according to partnership structure depending on the corporation being Family or multi Partner Company;

• The historical progress of your company, size, goals, and current/past partnership structure is examined.
• All of the family members/shareholders are interviewed one-on-one, personal orientation and expectations are interpreted.
• Family values, family and company relations are analyzed.
• Family Council is formed and awareness sessions are performed.
• Constitution commission is created.
• The scope of the constitution is determined and approved by the council.
• Constitution template is created according to the goals and aims of shareholders.
• Constitution is presented to the Council / Shareholders and get opinions from them.
• After the constitution is finished, it is discussed between shareholders, and last additions are done.

Like how “The Ships are built before the storm”;

You should build your own ship before the storm. Before unexpected crises emerge, contact our experts.