The executive decision-making body that manages the family elements of governance in a family enterprise.

A family council – sometimes called a family board – is a family governance structure that oversees, manages, and directs activities relevant to the lives of family members.

Across generations, a family typically needs to shift from single decision-makers to having some form of rules-based decision-making that reflects the needs and desires of the extended family. Small families may first form an executive committee or council that meets to discuss and decide on matters affecting the family. Later, as the family grows in size, it may also choose to start holding family assemblies that include more members and covers a wide variety of topics. 

The attributes of a family council may be defined within a family constitution or family charter, including how leadership is designated, how replacement of members occur, and how conduct is codified.  Family councils often collaborate with other parts of family enterprise governance such as shareholder boards, boards of directors, the family office, and the family foundation. Elements that help define a family council versus a family assembly include the following:

• A relatively small body, ranging typically from three to ten members.  In contrast, a family assembly may consist of all bloodline and partnered family members over the age of 14, potentially in the hundreds.

• Meeting at a frequency necessary to conduct business efficiently in a timely manner. Family councils often meet quarterly, while family assemblies may occur once every two years or less often.

• Participation is generally representative, drawing from each branch of the family, by appointment, or by election. In family assemblies, participation may be relatively automatic by virtue of age and family affiliation.

• Responsibilities include hearing disputes in privacy, discussing confidential information about the family and the enterprise, creating committees, making policies, and fostering education throughout the family. Family assemblies are more open and potentially more inclusive of minority views.

• The family council operates on behalf of and at the behest of the larger family assembly.