Which of the following statements about family councils is true?
A) A family council should be created before holding a family retreat.
B) A family council is the organizational and strategic planning arm of a family.
C) The members of a family council should be appointed by the owner of the family business.
D) A family council should be looked at as a casual get-together.

Question

Quizplus · Accepted Answer

A family council is responsible for the organizational and strategic planning of a family. It should be formed after a family retreat to address issues such as governance, succession, legacy, and communication. The members of the council should not be appointed by the owner of the family business alone, they should include family members from each generation and be elected based on their skills, experience, and willingness to serve. A family council should not be viewed as a casual get-together, but rather as a formal and structured entity to manage family affairs.

Which of the Following Statements About Family Councils Is True