40 NEWSLETTER 2021 constitution. Within this scope, working or internship conditions in the companies, recruitment and evaluation processes, performance evaluations, conditions for taking part in the management such as being a member of the board of directors, formation of the management bodies, rules and limitations regarding shareholding of the family members, and succession plans, may be included in the text in detail. However, it is generally preferred to regulate issues such as aggravated quorums in general assembly and board of directors’ meetings, restrictions on the transfer of shares, the procedure for sale and transfer of shares to family members, the determination of privileged shares, dividend rates and distribution periods, in the shareholders’ agreement. Therefore, giving the general outlines of the aforementioned rules and principles in family constitutions and referring to the shareholders’ agreement for elaboration may be deemed sufficient. General Provisions Regarding Family Constitution One of the notable roles of a family constitution is the regulation of family assemblies and/or family councils. These can be formed within the scope of the text, and then the purpose, duties and responsibilities of these structures, their decision-making and meeting procedures can be determined. In addition, membership conditions or election procedures and the boundaries of their relations with family and family companies may be designated. The family assembly usually consists of natural members of the family. Family members have the opportunity to discuss and obtain information on issues concerning the future of the family and companies at the family assembly/council meetings, which are held at pre-determined intervals. During these meetings, they have a chance to take decisions on essential matters by consulting with each other. The family assembly can be considered as the general assembly of the family. On the other hand, the family council, which may act as a board of directors for the family, is a platform that regulates the necessary policies, takes decisions, implements, and supervises the issues with regards to the family and the companies. These structures can be in communication and coordination with the boards of directors of family owned companies, and the boundaries of this coordination can be specified with the provisions to be included in the constitution.
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