FAMILY AND COMPANY CONSTITUTION

The majority of companies that direct the economic markets in our country and the world are family companies. while 95% of companies and public companies in Turkey consisting of 75% of the family business; It is stated that family businesses represent 75 percent of the gross national product. At this point, the difficulties created by the coexistence of family relations and such great economic power prevent the transfer of the company to the next generation.

As a matter of fact, only 3 out of every 100 companies can reach the third generation. The solution for family businesses is through institutionalization and professionalization. Companies that keep the chemistry of family members and professionals well can achieve the aforementioned generation transfer and economic success.

The foundation of the institutionalization of family businesses is the creation of a family constitution that determines the duties and functions of family members in companies, ensures that the economic steps of these companies are planned and the necessary decisions are made, sets rules for generation transfer and inheritance sharing, and guarantees the presence of professionals in companies.

"Forensis" has previously provided legal advice to many famous families. It has the necessary experience and knowledge for the Family Constitution to be prepared in the first and perhaps the most important step to be taken on the road to institutionalization. The Family Constitution basically includes the following provisions:

General Provisions Section covers basic concepts such as Purpose, Definitions, Family Vision, Family Traditions.
Family Assembly Section, issues such as the Formation of the Assembly, Decision Making Mechanisms and Quorums, Recruitment of New Members, Resignation of Members, Presidency, Meeting Procedure, Members' Non-Family Business Relations are regulated. The Family Council is the most important and most authoritative decision-making body. For this reason, the steps to be followed and the measures to be taken in case of deadlocks to keep the Assembly functioning are also shown in this section.
Executive Board and Professionals Section, rules are set for the Executive Board, where family members receive support from professionals and are authorized to take decisions on issues specified in the Family Constitution. The qualifications of professionals and how many people they will be, their powers are regulated in this section.
Income and Expenditures of Family Members Section are arranged in a separate section. The biggest obstacle to institutionalization in our country is that people use companies as cash registers. This system, which operates as the Partners Current Account, is the biggest obstacle to the healthy growth of companies. In this section, transparency is ensured by regulating the relations of Family Members with the company, and regulations are made to prevent companies from suffering economic losses.
Ownership Section, the family's assets are divided. Shareholding rates in companies and rules regarding share transfer are discussed.
Final Provisions Section, The effective date of the Constitution and the harmonization process are determined in the Final Provisions. Sanctions and dispute resolution methods regarding compliance with the Constitution are also shown.