FAMILY COUNCIL
Back to GlossaryDefinition
The governing body that represents the family. For the benefit of the greater family, the family council acts as a decision making and rule-making body, directs family communication, and is responsible for planning.
Summary
A Family Council is essentially the 'board of directors' for a family, particularly important in wealthy or business-owning families. Think of it as a formal group of family members who meet regularly to make important decisions that affect the entire family. Unlike informal family discussions, a Family Council has structured meetings, defined roles, and formal authority to create family policies, resolve conflicts, and plan for the family's future. It helps large or complex families operate more like an organization, ensuring everyone's voice is heard and important decisions aren't left to chance or individual family members acting alone.
Usage Context
Understanding Family Councils is crucial when studying family business governance, wealth management across generations, family conflict resolution, and organizational structures that help families maintain unity and shared purpose over time.
Common Confusions
- Thinking a Family Council is the same as informal family discussions or meetings
- Assuming all family members automatically have equal say in the Family Council
- Confusing Family Council with a business board of directors (though they share similarities)
- Believing Family Councils only deal with money and business matters
- Thinking Family Councils are only for extremely wealthy families
- Assuming Family Council decisions are legally binding like corporate board decisions
