NEWSLETTER-2021

39 COMMERCIAL LAW These issues may be grouped under three main headings: i) family related regulations, ii) arrangements with regards to the family’s businesses, and iii) the general provisions of the family constitution. Regulations Regarding the Family In order for the family to transfer its values to future generations, to establish healthy communication within the family, and to ensure the sustainability of this communication, common values and awareness, it is extremely important that the issues which concern the family are properly identified and written down. Therefore, family constitutions usually begin by describing the family’s vision, mission, values, goals, culture, communication principles, and continue with articles which define family members and family-owned companies. The separation of family and company assets, which is one of the most important issues for family businesses, as well as asset management, are also regulated under this section of the constitution. Policies can be determined on the storage of family assets, the use and distribution of return-on-assets, or how these assets will be used in case of need or of a new investment. In this respect, borrowing limits of the shareholder family members against the company can be specified by considering the provisions of the TCC. Moreover, it is also possible to determine the rules and principles regarding the education and career development of young family members, to create funds such as family banks or family safes, and to include all these issues in the text of the constitution. In some cases, if there is a museum, school, nursery or park, which a family has already built, a family constitution can determine the responsibilities for ensuring the continuity of these projects, whether a provision is made for social responsibility projects from the family budget, and the processes for the selection and approval of the projects. Regulations Regarding Companies The rules and principles with regards to the management of companies are among the basic and substantive provisions in a family

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