Customized Family Charter Formulation Service

Service Introduction

The family charter is an internal document which sets out the vision, mission, values, norms of family members, and which meanwhile governs and allocates family assets, and plans family-family business relationships. With the rapid development of China's economic and social environment in the past three decades, Compared with the 1st generation private entrepreneurs, the growth and education environments of most 2nd generation are obviously different from 1st generation, which leads to the different philosophy and values between the 2nd generation and their parents in some families. In the future, the situation of 3rd or 4th generations is even more unpredictable. If there is no effective family governance system, the succession of family business will be very hard to be successful in the future. Even worse, this may result in family member feuds and split of the family. Under the rational designed system, the trust structure can cooperate with the family charter to achieve effective and long-term family governance and become Chinese distinguished family.

Services Functions

Achieve the Family Governance, and achieve the successful succession of Family Spirit and Material Wealth from Generation to Generation

The family charter documents family values and behavioral norms. On the one hand, the process of which family members reach consensus during the discussion about values and behavioral norms for the family charter will promote the emotional relationship among family members. On the other hand, family values and behavioral norms are constantly instilled into descendants. All family members who are in unison of values and behavioral norms reduce the conflicts they may encounter in decision-making.

Achieve a Smooth Intergenerational Succession of Family Business

The family charter is one of the important tools for family businesses to sustain their development. The family charter is able to clearly define the boundaries and s between family governance and business governance, establish a formal governance mechanism between the family and the business, set up the employment policy for family members and the business succession plan, so that it enhances the communication between family and business, and reduces the family's impediment to the business development.

Provide a Default Solution to Possible Conflicts among Family Members

The family charter provides a clear and definite succession path for family dominance power and family business leadership, which effectively reduce the disputes that may occur when family members competing for family dominance power and family business leadership in intergenerational succession. Additionally, it provides a default solution or problem-solving mechanism for the special circumstances which family may encounter in the future, and avoid serious consequences and impacts on family or family business.

In conclusion, the purpose of the family charter is not only to write a document, but also is a process of helping family members to explore common values and develop harmonious relationship. For the large family which has lots of family members and big family business with the wish of descendants’ unity and successful family spirit and business succession, it is more necessary to have a family charter.

Service Contents

Research and Questionnaire Design Phase

For the purpose of this project and the demands of the client family, establish a family charter advisory group;

Conduct due diligence on the family status for the family, including but not limited to, family members’ personal information, life experience, marital status, relationships with other family members, connection with family business, etc. Analyze the problems found out during the due diligence, provide legal advices, and issue due diligence memorandum;

Jointly design an questionnaire of family charter for this project with lawyers and other professionals in China, Canada and/or other relate jurisdictions;

Family Charter Formulation Phase

According to the questionnaire of family charter, provide the family meeting schedule;

Convene or participate in the family meetings, discuss and confirm on each specific issues with family members, and discuss with family members one-on-one if needed;

Draft a family charter d on the consensus formed by family members' discussions;

Gather lawyers and other professionals in China, Canada, and/or other jurisdictions involved in this project to provide legal advices on the family and family members' legal issues related to family charter and family governance;


Gather lawyers and other professionals in China, Canada, and/or other jurisdictions involved in this project to discuss and revise the family charter;

Convene one or more family meetings to discuss and revise the family charter, until the family charter is finalized;

Assist the family in learning and implementing family charter;And


Assist the family to establish a family council or similar functional organizations;

Assist family to the family charter with the offshore family trust structure.

Target Clients

If you and your family:
Expect to achieve the succession of family vision, mission and values
Expect to effectively regulate and restrict the behavior of family members;
Expect to form a continuous and effective internal governance structure and operation mechanism;
Expect the family business be managed and handed over by family members in a reasonable and orderly manner.
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