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Corporate Governance Services
Institutionalization refers to the building of structures and processes that help sustain business in a company regardless of the peculiar methods followed by the managers. A corporate management approach is crucial for the sustainability of the institutional entity and prestige of a company.
Corporate Governance Advisory is a complete set of services that assists companies during their institutionalization process. We offer comprehensive services to our clients as follows.
- Structuring senior management
- Support service for improvement of internal controls
- Creation of an authority matrix/ organization guideline
- The Family Constitution and Succession Planning
We evaluate the existing senior management structure of companies within the framework of Corporate Management Principles, identify job definitions and working styles of the senior management structure (Board of Directors, Early Risk Identification Committee, Monitoring Committee, etc.) in line with the Corporate Management Principles, and document who has what authority and responsibilities.
Structuring senior management
To enable standardization of the processes, we write procedures that incorporate all the fundamental controls with respect to the internal processes of companies.
Support service for improvement of internal controls
In the interest of an efficient and productive delegation of authority, which is an essential step of corporate management, we hold talks with the Board of Directors, Senior Management and the relevant process owners to identify existing approval limits and authority, and fashion an authority matrix on the basis of a given position with respect to all processes. We also formulate an “organization guideline” in tandem with the new Turkish Commercial Code.
Creation of an authority matrix/ organization guideline
Institutionalizing a company is by itself insufficient in terms of achieving the sustainability of family businesses; family relations should also be institutionalized. A family constitution refers to the whole of the policies that govern the interaction of the family and the business. The family constitution seeks to ensure the growth and sustainability of the business, the continuation of “Family Ownership,” while bolstering family strength.
Constructing a family constitution precludes any conflicts that may arise between family members and also helps to find methods of resolving potential conflicts before they emerge, thus aiming to sustain the development of the business in the long term.
We support our clients by offering to formulate a Family Constitution that stipulates the combination of policies that outline the family’s interaction and commitment to the mission, philosophy and core values of the business.
All through our service support, we organize meetings with family members to understand their needs and expectations and we construct the family constitution accordingly.
We offer services in a range of areas geared to the needs and dynamics of the family business: family councils, family values, shareholders structure, board structures, family appointment criteria, shareholding, retirement, family members not employed by the company, profit share and profit distribution, dispute resolution and sanctions regarding breaches of the constitution.
Succession planning is a process of handing down the management of a company to future generations. Research indicates that only 35% of family-owned businesses survive into the second generation and 15% survive into the third. Developing strategies and creating a succession plan for sustainability and the future is crucial for businesses.
Our professionals offer services in assisting the creation process of a succession plan that will influence the business, the family, and also key executives in order to ensure the transfer of corporate governance to future generations. In succession planning, we prepare a leadership and management structure based on the nature of the company and its current position, identifying successors and creating a roadmap for the process of the transfer of ownership.
The Family Constitution and Succession Planning