A CHARTER TO AVOID CONFLICT

India's family businesses have long been the bedrock of our economy, built on the values of hard work, prudence and commitment to long-term success.

- CHANDRESH RUPAREL

According to a recent PwC report, the number of family offices in India has skyrocketed from a mere 45 in 2018 to over 300 today. This exponential growth signifies: (a) the wealth generated in India and (b) a fundamental change in how families manage assets. It is a testament to their growing appetite for sophisticated wealth preservation, growth and diversification strategies.

The intersection of professional responsibilities and personal relationships in a family-run business is a challenge, thereby making a well-drafted family charter crucial. The family constitution, intended to document and formalise the transfer of wealth, vision, values and ethos across generations, quickly shifts from being a helpful guideline to an essential requirement.