Governance guide
Family council and family assembly: the family's governing bodies
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Other languages: Deutsch · Français · Español
Short answer
The family assembly includes all family members from a set age and serves information, exchange and fundamental decisions. The family council is a smaller, elected body that represents the family between assemblies, steers the family office and develops the family constitution. Legally binding decisions, however, are taken by the bodies of the companies and foundations.
Two bodies, two tasks
| Family assembly | Family council | |
|---|---|---|
| Composition | All family members from a set age, often with partners | Elected representatives, often one per family branch |
| Frequency | Once or twice a year | Several times a year |
| Tasks | Information, values, electing the family council, fundamental changes | Steering the family office, preparing decisions, resolving conflicts |
| Size | Can include more than 50 people | Usually three to seven members |
The line between these and the legal bodies
The family council and family assembly are bodies of the family, not corporate bodies in the company-law sense. Legally binding decisions are taken by the general meeting and the board of directors of a company limited by shares, the members' meeting and managing directors of a GmbH, or the foundation board of a foundation. The family bodies form the family's will; the legal bodies implement it within their own duties. A foundation board is bound by the purpose and articles and may not follow the family council's instructions without review.
Composition of the family council
Representation of the family branches, supplemented by members of the next generation, has proved its worth. Some families bring in a trusted person from outside the family who moderates and mediates in conflicts. Terms of office, election procedures and age limits belong in the family constitution.
Good meeting practice
- An annual plan with fixed dates and topics.
- Papers a week in advance, including a wealth overview and open decisions.
- A clear separation of information, discussion and resolution.
- Minutes recording resolutions, responsible persons and deadlines.
- Follow-up on resolutions at the next meeting.
Common conflicts
Tensions arise when family members are informed to different degrees, when active and passive shareholders have different expectations, or when it is unclear who decides. Transparent information for everyone and clear responsibilities are the most effective prevention.
In FLIORE
FLIORE provides the basis for family bodies: consolidated wealth overviews and monthly reports for meeting papers, governance deadlines in the calendar, documents such as minutes and the family constitution in the encrypted vault, and graded insight for family members through the client portal.
At a glance
| Family assembly | All members; information and fundamental decisions |
|---|---|
| Family council | Elected body; steering between assemblies |
| Legal effect | Lies with the bodies of the companies and foundations |
Terms on this page
- Consolidated wealth
- The overall view of a family's wealth across all banks, structures and currencies in one reporting currency.
Frequently asked questions
From what family size is a family council needed?
As soon as several family branches or the third generation are involved, a smaller body becomes helpful. Before that, a regular family meeting is often enough.
Are resolutions of the family council legally binding?
Usually not directly. They can become binding through shareholders' agreements, partnership agreements or articles.
Should in-laws take part?
Each family decides. Many include partners in the family assembly but reserve the family council for blood relatives or shareholders.
How is the next generation involved?
Through guest status on the family council, committees of their own – for philanthropy, for example – and information rights extended step by step.
How are decisions taken in the family council?
The family constitution sets this out: often a simple majority for day-to-day matters and a qualified majority or unanimity for fundamental questions such as changes to the constitution or large investments. Clear rules prevent deadlock.
Who prepares the meetings?
Usually the head of the family office together with the chair of the family council. They compile papers, the wealth overview and draft resolutions and make sure resolutions are followed up.
Sources
- Swiss Code of Obligations (OR, SR 220) – Fedlex
- Swiss Civil Code (ZGB), foundation law Art. 80 et seq. – Fedlex
- Governance Code for Family Businesses – Governance Code Commission
This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.
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