As time passes, family businesses often witness an increase in the number of shareholders spanning multiple generations. In many cases, the majority of family members who own shares are not actively involved in the business. Nevertheless, as family members and shareholders, they have a vested interest in staying informed about the company's affairs. They also have the right to access shareholder information pertaining to their ownership stake and the business's performance. Therefore, effective communication with family members who are not directly involved in the company is crucial. Many family businesses seek impartial advice from independent parties or family members and establish family advisory boards or boards of directors. The benefit of receiving unbiased advice extends beyond improving communication between family shareholders and the company; it can also lead to increased productivity and overall satisfaction.

We collaborate with family businesses to develop communication and governance structures, encouraging them to consider several significant questions, including:

• Who has the authority to determine the structure of the board of directors? How are directors identified, recruited, and approved? How do the board of directors and the family owners interact with each other?
• What considerations have been given to establishing a family council (and possibly a family assembly) to organize family ownership and potentially represent the family to the board of directors?
• What is the communication policy governing the sharing of company information within and outside the family?
• Does the family hold regular family meetings? Who has the responsibility to determine who attends these meetings?
• How does the business involve family members who are not employed in the company?