Corporate Governance: structuring the business to prevent conflicts
Poorly defined governance can hinder your company’s development.
Putting the right tools in place helps define everyone’s roles clearly, provide a secure framework for management and align everyone’s vision. Without a clear framework, misunderstandings can arise and slow down decision-making. How should roles and responsibilities be organised? And how can a sustainable and balanced way of working be ensured?
What are the key tools for effective corporate governance?
This involves putting in place rules and mechanisms that ensure the smooth running of the company and are tailored to its specific circumstances:
- The shareholders’ agreement and family charter: These are the legal and ethical pillars that establish the ground rules, including the company’s purpose and values, decision-making processes, and the conditions governing the entry and exit of the next generation.
- The family forum and communication tools: These structured forums enable family-related matters to be kept separate from business management issues, while ensuring that everyone remains involved.
- Independent directors: Bringing external perspectives onto the board provides objectivity, a broader perspective and helps reduce emotional bias.
Corporate mediation: an effective method for resolving complex situations
A poorly managed conflict can weaken an entire company.
Mediation is a confidential and voluntary process that enables a conflict to be resolved with the support of an independent, neutral and impartial third party. It aims to restore dialogue between the parties in order to build a sustainable solution.
Unlike court proceedings, mediation prioritises dialogue and the search for a balanced agreement. It can lead to practical solutions tailored to the company’s circumstances and accepted by all parties.
Mediation and corporate governance: in what situations?
I want to formalise the rules governing decision-making and succession within my company.
Mediation
I am facing a conflict or deadlock with my partners or shareholders.
Mediation
I am dealing with relationship tensions in a family or management context.
Mediation
How does corporate mediation work?
Depending on the parties’ wishes, we may either initiate a formal mediation process governed by a mediation protocol setting out its objective framework or conduct a less formal process.
In all cases, our approach is based on the following principles:
- Listening and assessment: Before seeking a solution, we take the time to understand in depth what is happening within the company.
- Confidential one-to-one meetings: We meet each stakeholder separately. As neutral and supportive third parties, we provide a safe environment in which everyone can speak freely and in complete confidence (caucus).
- Identifying ways forward: Our neutral approach enables us to gather valuable information, identify the key underlying messages and pinpoint the real sources of deadlock that the parties may no longer feel able to discuss face to face.
- Negotiating an agreement: Based on this assessment, we work to restore constructive dialogue with a view to reaching an amicable, balanced and sustainable agreement. Where a mediation agreement is concluded with the assistance of an accredited mediator, it may be approved by a judicial authority and thereby acquire the force of a court judgement.
Why entrust your company’s governance or mediation to Fondaris?
We are one of the few advisory firms to combine these two areas of expertise. Our mediation approach, grounded in active listening and respect, guides all our work.
With a long history of supporting family businesses (our former name was Family Business Transmission), we have a thorough understanding of their emotional and economic dynamics.
Our firm includes several accredited mediators. This accreditation guarantees compliance with a strict code of ethics, complete neutrality and the possibility of giving a solid legal effect to the agreements reached.
The challenges faced by SMEs and family-owned businesses do not stop at national borders. We work throughout the Benelux and in France. To reflect the needs of your teams and shareholders, we regularly provide our services in French, Dutch and English.
Our work has one objective: to protect the business, preserve the value of your assets and safeguard personal relationships.
