{"id":18816,"date":"2026-10-21T14:23:27","date_gmt":"2026-10-21T03:23:27","guid":{"rendered":"https:\/\/chuatan.com.au\/?p=18816"},"modified":"2026-10-21T14:23:27","modified_gmt":"2026-10-21T03:23:27","slug":"family-governance-australia-family-council-step-by-step","status":"publish","type":"post","link":"https:\/\/chuatan.com.au\/en\/family-governance-australia-family-council-step-by-step\/","title":{"rendered":"Family Governance in Australia: Building a Family Council Step by Step"},"content":{"rendered":"<div class=\"ct-article\" data-no-translation>\n<p>Many families hear the words &#8220;family governance&#8221; and picture a thick rulebook, a formal board and outside consultants. It sounds like something for very large dynasties, not a family that runs three restaurants, a property portfolio and a family trust.<\/p>\n<p>In practice, good family governance usually starts small. It is simply the way a family makes decisions together about what it owns in common: how it talks, who decides what, and what happens when people disagree. Most families already have some form of it. The question is whether it is deliberate and whether it will survive the next generation.<\/p>\n<p>For Chinese and Asian families, the challenge is often cultural as much as legal. Respect for elders, the importance of face, and a reluctance to raise difficult subjects directly can make open discussion hard. A good governance process is built to work with those values, not against them.<\/p>\n\n<h2>Think of governance as scaffolding, not a cage<\/h2>\n<p>Scaffolding goes up step by step, supports the building while it is being shaped, and is adjusted as the building grows. Family governance works best the same way. It should give the family early wins, build trust in the process, and be revised as the family changes. A family that tries to write a complete constitution at the first meeting often stalls. A family that starts with regular, well-run conversations usually gets further.<\/p>\n<p>Conversations come before documents, and they continue after documents are signed.<\/p>\n\n<h2>Stage 1: Regular family meetings<\/h2>\n<p>The first step is simply to meet, regularly and with purpose. A family meeting is different from a family dinner. It has:<\/p>\n<ul>\n<li>an agreed time, perhaps once or twice a year, with video for family members overseas;<\/li>\n<li>a short agenda circulated beforehand;<\/li>\n<li>someone to chair, and someone to take brief notes;<\/li>\n<li>information shared openly: how the business and investments are performing, and what decisions are coming up;<\/li>\n<li>an agreed language, or interpretation, so every generation can follow.<\/li>\n<\/ul>\n<p>Early meetings should focus on sharing information and agreeing on simple matters. Avoid starting with the most divisive question, such as who will run the business. Early success builds confidence for harder conversations later.<\/p>\n\n<h2>Stage 2: A family council<\/h2>\n<p>As the family grows, meeting as a whole group becomes difficult. A family council is a smaller group, often with representatives from each branch or generation, that organises the family&#8217;s governance and speaks for the family between meetings. Its role might include:<\/p>\n<ul>\n<li>preparing for family meetings and following up decisions;<\/li>\n<li>being the link between the family and the business board;<\/li>\n<li>overseeing family policies, such as employment of family members and education;<\/li>\n<li>being the first point of contact when a concern or disagreement arises.<\/li>\n<\/ul>\n<p>A family council is generally not a legal body. Its decisions do not bind the trustee or company board unless they are given effect through the proper documents. It is important that everyone understands this, so that the council&#8217;s role is respected without being mistaken for legal control.<\/p>\n\n<h2>Stage 3: Written policies<\/h2>\n<p>Once the family has some experience of working together, it can begin to write down what it has agreed. Start with the issues that come up most often:<\/p>\n<ul>\n<li>employment of family members and in-laws;<\/li>\n<li>how information is shared;<\/li>\n<li>distributions and dividends;<\/li>\n<li>support for education and new ventures;<\/li>\n<li>how disagreements will be handled, in agreed steps from family discussion to a facilitator, mediation and, only at the end, formal proceedings.<\/li>\n<\/ul>\n<p>Some of these will remain family understandings. Others, such as employment and dividend policy, may be formally adopted by the company board, and some, such as rules on share ownership and exit, may need to be placed in a shareholders&#8217; agreement or constitution to have legal effect. Over time, the policies may be gathered into a family constitution or charter.<\/p>\n\n<h2>Involve the next generation in running the process<\/h2>\n<p>A common mistake is to design governance for the next generation rather than with them. Children who are handed a finished set of rules are less likely to respect them. Instead:<\/p>\n<ul>\n<li>invite adult children to help prepare agendas, take notes or chair part of a meeting;<\/li>\n<li>create a next-generation group that reports to the family council;<\/li>\n<li>give them real responsibility for something manageable, such as the family&#8217;s charitable giving or an education fund;<\/li>\n<li>explain the structures to them early: what the trust is, who the directors are, why decisions are made as they are.<\/li>\n<\/ul>\n<p>The aim is a generation that is ready to look after both the wealth and the relationships.<\/p>\n\n<h2>Revise as generations change<\/h2>\n<p>Governance that suits a founder and three children will not suit a family of cousins. Build in a regular review, perhaps every few years, and treat amendments as a normal part of the process rather than a sign of failure.<\/p>\n\n<h2>Cultural considerations for Chinese families<\/h2>\n<ul>\n<li><strong>Respect for elders.<\/strong> Give the founder an honoured role in the process, such as opening meetings or speaking to the family&#8217;s history and values. Respect is easier to maintain when the elder&#8217;s place is secure.<\/li>\n<li><strong>Face.<\/strong> Avoid putting anyone in a position where they must lose an argument in public. Raise sensitive matters privately first, and frame proposals as options rather than criticisms.<\/li>\n<li><strong>When direct discussion is hard.<\/strong> Written questions in advance, one-to-one conversations before a group meeting, and smaller sub-groups can make difficult topics easier to approach.<\/li>\n<li><strong>Gender and birth order.<\/strong> Traditional expectations about sons, daughters and the eldest child may differ between generations, and between family members in Australia and in Asia. These differences are best brought into the open gently, early, and with care.<\/li>\n<li><strong>Language.<\/strong> Where older and younger generations are more comfortable in different languages, conduct meetings bilingually or arrange interpretation so no one is excluded.<\/li>\n<\/ul>\n\n<h2>The role of an independent facilitator<\/h2>\n<p>Many families find it hard to run these conversations themselves. The founder may dominate, siblings may fall into childhood roles, and nobody wants to be the one who raises the hard question. An independent facilitator can:<\/p>\n<ul>\n<li>meet family members individually first, to understand concerns that will not be said in the group;<\/li>\n<li>design an agenda that builds from easier to harder topics;<\/li>\n<li>keep discussion balanced, so quieter voices are heard;<\/li>\n<li>help the family reach decisions without anyone losing face;<\/li>\n<\/ul>\n<p>A facilitator who is also trained in mediation can help the family move into a structured dispute process if disagreement becomes serious.<\/p>\n\n<h2>A simple starting plan<\/h2>\n<ol>\n<li>Agree to hold a first family meeting, and who will attend.<\/li>\n<li>Decide whether an independent facilitator will help.<\/li>\n<li>Share basic information about the family&#8217;s assets and structures.<\/li>\n<li>Agree on one or two simple decisions, such as how often to meet.<\/li>\n<li>Invite the next generation to take on a role.<\/li>\n<li>After a few meetings, consider forming a family council.<\/li>\n<li>Write down the first policies, and decide which need legal effect.<\/li>\n<\/ol>\n\n<h2>Frequently asked questions<\/h2>\n<h3>What is family governance in Australia?<\/h3>\n<p>It is the set of structures and agreed processes a family uses to make decisions about its shared business and wealth. It sits alongside the legal structures, such as trusts and companies, and shapes how the family uses the powers those structures give.<\/p>\n<h3>What does a family council do?<\/h3>\n<p>A family council organises family meetings, oversees family policies and links the family with the business board. It usually has no legal power of its own, so its decisions need to be carried into the proper documents if they are to bind the trustee or company.<\/p>\n<h3>When should a family start family governance?<\/h3>\n<p>Ideally while the founder is active and relationships are good. Governance is much easier to build before a crisis than during one.<\/p>\n<h3>Do we need a family constitution to begin?<\/h3>\n<p>No. Many families start with regular meetings and a few written policies, and only later bring them together into a family constitution once they have experience working together.<\/p>\n\n<h2>How Chua Tan Associates can help<\/h2>\n<p>We help families build governance at a pace that suits them: designing and facilitating early family meetings, setting up a family council, drafting policies, and identifying which decisions need to be carried into trust deeds, constitutions or agreements to have legal effect. Justin Chua is a Nationally Accredited Mediator and an Accredited Family Business Advisor who trained in accounting, and we work alongside the family&#8217;s accountant. We can conduct meetings in English, Mandarin or Cantonese, online with family members in different countries, and we assist families across Australia and overseas.<\/p>\n<h2>Related reading<\/h2>\n<ul class=\"ct-related\"><li><a href=\"\/en\/is-a-family-constitution-legally-binding\/\">Is a Family Constitution Legally Binding? Wishes vs Rules<\/a><\/li><li><a href=\"\/en\/family-business-employment-policy-paying-family-members\/\">Family Business Employment Policy: Paying Family Members Fairly<\/a><\/li><li><a href=\"\/en\/next-generation-succession-family-buy-in\/\">Bringing the Next Generation In: Values, Leadership and Family Buy-In in Succession Planning<\/a><\/li><\/ul>\n<p><em>Chua Tan Associates acts for families, executors, trustees and their professional advisers in estate planning, estate administration and estate disputes in Australia and across borders. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an <a href=\"#ct-enquiry\">enquiry<\/a>. Advice is available in English, Mandarin and Cantonese.<\/em><\/p>\n<p class=\"ct-byline\"><em><a href=\"\/en\/justin-chua\/\">Justin Chua<\/a> (\u8521\u667a\u52cb), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal or tax advice.<\/em><\/p>\n<\/div>\n\n\n<div id=\"ct-enquiry\" class=\"ct-eq\" data-no-translation>\r\n<style>.ct-eq{background:#f4f1ea;border:1px solid #e3ddd0;border-radius:10px;padding:22px 24px;margin:32px 0;font-size:16px;line-height:1.6}.ct-eq h2,.ct-eq h3{margin:0 0 6px}.ct-eq p{margin:0 0 12px}.ct-eq form{display:grid;grid-template-columns:1fr 1fr;gap:12px}.ct-eq label{display:block;font-size:14px;font-weight:600;margin-bottom:4px}.ct-eq input,.ct-eq select,.ct-eq textarea{width:100%;box-sizing:border-box;padding:10px 12px;border:1px solid #cfc6b4;border-radius:6px;font-size:16px;background:#fff}.ct-eq .full{grid-column:1\/-1}.ct-eq button{background:#8a6a3b;color:#fff;border:0;border-radius:6px;padding:12px 22px;font-size:16px;cursor:pointer}.ct-eq .hp{position:absolute;left:-9999px}.ct-eq small{color:#5f5a50}.ct-eq .ok{background:#e7f3e8;border-left:4px solid #3c8d40;padding:12px 16px}.ct-eq .bad{background:#fbeaea;border-left:4px solid #b03a2e;padding:12px 16px}.ct-eq .ct-direct{display:flex;flex-wrap:wrap;gap:10px;margin-top:14px}.ct-eq .ct-direct a,.ct-eq .ct-direct button{background:#fff;color:#2b2b2b;border:1px solid #cfc6b4;padding:9px 14px;border-radius:6px;text-decoration:none;font-size:15px}@media(max-width:640px){.ct-eq form{grid-template-columns:1fr}}<\/style>\r\n<h3>Tell us about the estate<\/h3>\r\n<p>A short message is enough. We reply in English, Mandarin or Cantonese, and quote fees in writing before any work starts.<\/p>\r\n<form method=\"post\" action=\"https:\/\/chuatan.com.au\/wp-admin\/admin-post.php\">\r\n<input type=\"hidden\" name=\"action\" value=\"ct_estate_enquiry\">\r\n<input type=\"hidden\" name=\"ct_ts\" value=\"1792591465\">\r\n<input type=\"hidden\" name=\"ct_lang\" value=\"en\">\r\n<input type=\"hidden\" name=\"ct_page\" value=\"https:\/\/chuatan.com.au\/en\/family-governance-australia-family-council-step-by-step\/\">\r\n<div class=\"hp\" aria-hidden=\"true\"><label>Website<input type=\"text\" name=\"ct_website\" tabindex=\"-1\" autocomplete=\"off\"><\/label><\/div>\r\n<div><label for=\"ct_name\">Your name *<\/label><input id=\"ct_name\" name=\"ct_name\" required maxlength=\"120\"><\/div>\r\n<div><label for=\"ct_email\">Email<\/label><input id=\"ct_email\" name=\"ct_email\" type=\"email\" maxlength=\"160\"><\/div>\r\n<div><label for=\"ct_phone\">Phone, WeChat or WhatsApp<\/label><input id=\"ct_phone\" name=\"ct_phone\" maxlength=\"80\"><\/div>\r\n<div><label for=\"ct_language\">Preferred language<\/label><select id=\"ct_language\" name=\"ct_language\"><option>English<\/option><option>Mandarin<\/option><option>Cantonese<\/option><\/select><\/div>\r\n<div><label for=\"ct_type\">What do you need help with?<\/label><select id=\"ct_type\" name=\"ct_type\"><option value=\"\">Please choose<\/option><option>Someone has died and there is a Will<\/option><option>Someone has died and there is no Will<\/option><option>Someone has died and I am not sure if there is a Will<\/option><option>Making or updating a Will or estate plan<\/option><option>Executor or trustee question<\/option><option>A dispute about an estate<\/option><option>Other<\/option><\/select><\/div>\r\n<div><label for=\"ct_state\">Where are the assets?<\/label><select id=\"ct_state\" name=\"ct_state\"><option value=\"\">Please choose<\/option><option>Victoria<\/option><option>New South Wales<\/option><option>Queensland<\/option><option>Western Australia<\/option><option>South Australia<\/option><option>Tasmania<\/option><option>ACT<\/option><option>Northern Territory<\/option><option>More than one state<\/option><option>Overseas as well<\/option><option>Not sure<\/option><\/select><\/div>\r\n<div class=\"full\"><label for=\"ct_time\">Best time to contact you (optional)<\/label><input id=\"ct_time\" name=\"ct_time\" maxlength=\"120\"><\/div>\r\n<div class=\"full\"><label for=\"ct_msg\">Brief details (optional)<\/label><textarea id=\"ct_msg\" name=\"ct_msg\" rows=\"4\" maxlength=\"3000\"><\/textarea><\/div>\r\n<div class=\"full\"><button type=\"submit\">Send enquiry<\/button><br><small>We use your details only to respond to your enquiry. Sending this form does not create a lawyer\u2013client relationship. <a href=\"\/privacy-policy\/\">Privacy<\/a><\/small><\/div>\r\n<\/form>\r\n<div class=\"ct-direct\"><strong style=\"width:100%\">Or contact us directly<\/strong>\r\n<a href=\"tel:+61396023988\">Call +61 3 9602 3988<\/a>\r\n<a href=\"mailto:chuatan@tpg.com.au\">chuatan@tpg.com.au<\/a>\r\n<a href=\"https:\/\/wa.me\/61490369102\" target=\"_blank\" rel=\"noopener\">WhatsApp +61 490 369 102<\/a>\r\n<button type=\"button\" class=\"ct-wechat\" data-msg=\"WeChat ID copied\">WeChat: chuatan262<\/button>\r\n<\/div>\r\n<\/div>\r\n\t\n\n<div class=\"ct-guides\" data-no-translation><style>.ct-guides{margin:28px 0}.ct-guides ul{display:grid;grid-template-columns:repeat(auto-fit,minmax(230px,1fr));gap:10px;list-style:none;padding:0;margin:10px 0 0}.ct-guides li{margin:0}.ct-guides a{display:block;padding:12px 14px;border:1px solid #e3ddd0;border-radius:6px;text-decoration:none;background:#fff;height:100%}<\/style><h3>Estate guides<\/h3><ul><li><a href=\"\/en\/do-i-need-probate\/\">Do I need probate? 2-minute check<\/a><\/li><li><a href=\"\/en\/what-to-do-when-someone-dies\/\">What to do when someone dies: 30-day checklist<\/a><\/li><li><a href=\"\/en\/letters-of-administration-victoria\/\">No Will? Letters of administration and who inherits<\/a><\/li><li><a href=\"\/en\/estate-planning-victoria\/\">Estate planning: Will, power of attorney, medical decisions<\/a><\/li><li><a href=\"\/en\/testamentary-trusts\/\">Testamentary trusts<\/a><\/li><li><a href=\"\/en\/superannuation-and-your-will\/\">Superannuation and your Will<\/a><\/li><li><a href=\"\/en\/executor-disputes\/\">Executor problems and disputes<\/a><\/li><li><a href=\"\/en\/professional-executor-trustee\/\">Professional executor &amp; trustee services<\/a><\/li><li><a href=\"\/en\/%E5%AE%A2%E6%88%B7%E8%AF%84%E4%BB%B7\/\">Client reviews<\/a><\/li><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Many families hear the words &#8220;family governance&#038;# [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_meta-robots-noindex":"","_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,19],"tags":[],"class_list":["post-18816","post","type-post","status-publish","format-standard","hentry","category-25","category-19"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.2 (Yoast SEO v28.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Family Governance in Australia: Building a Family Council Step by Step | Chua Tan Associates<\/title>\n<meta name=\"description\" content=\"Family governance in Australia step by step: start with family meetings, form a family council, involve the 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