While families overwhelmingly value communication and cohesion, the systems needed to support them remain uneven and, in many cases, underdeveloped. That’s one of the central findings of the most recent installment of the “Pulse of Family Business” research series by Family Business Magazine and Brightstar Capital Partners. Drawing on responses from 291 family enterprises — most led by second-, third- or fourth-generation leaders — the report offers a detailed snapshot of the structures, policies and dynamics shaping continuity today.
Governance Structures: Widespread Meetings, Emerging Councils
Shareholder meetings and family meetings remain the backbone of governance, with nearly two-thirds of respondents holding shareholder meetings and 60% holding family meetings. But beyond these essential practices, governance becomes more fragmented. Only 45% report having a family council, fewer than one in five have owner councils and just 11% have a NextGen council.
Where family councils do exist, they mainly focus on meeting planning, communications and NextGen education. These are vital activities, yet many councils lack the structure and resources needed to be effective. Most members volunteer or are appointed rather than elected. Only 40% of councils have a formal budget, six in 10 offer no compensation to participants and term limits exist in just 41% of cases. These gaps suggest that while families value governance, many have yet to build durable systems that can sustain continuity across generations.
Family Meetings: Inclusive, Frequent and Positive
Family meetings remain one of the most trusted governance tools — and the data underscores their value. Most families meet annually, and nearly one-third meet more frequently. Participation is broad: 88% include shareholders, 68% include spouses and many involve adult non-shareholders, children and trusted advisors. This inclusivity reflects the meetings’ dual purpose as venues for communication and education, and as opportunities to strengthen identity and belonging.
Funding patterns reinforce their central importance. More than half of companies fully fund meeting attendance, and another 23% subsidize costs. Only 12% expect families to pay their own way. For most respondents, these gatherings are viewed not as expenses but as investments in cohesion. More than 80% describe their impact on the business as positive or very positive. Still, only 31% reserve a shareholder-only segment, raising questions about whether ownership issues consistently receive needed focus.
Policies and Communication Tools: Progress and Gaps
Many families are building foundational policies: 61% have distribution policies, 56% have family employment rules, roughly half have codes of conduct or confidentiality policies and nearly half have constitutions or charters. But policy gaps persist in risk-related areas. Fewer than 30% have conflict-of-interest policies, and only 22% have social media guidelines. Communication infrastructure is also inconsistent. While email and in-person conversations dominate, only 16% use a secure digital portal, and just 20% have a formal dispute-resolution process.
Strengths and Weaknesses: Values Endure, Structure Lags
Families cite shared values, cohesion, long-term commitment and transparency as core strengths. Yet many acknowledge the need for more structure — clearer policies, stronger meeting cadences, better NextGen onboarding and more robust succession planning. Communication issues, conflict avoidance and limited accountability appear frequently. Families also express a desire for modernized tools and clearer documentation.
Together, the findings depict a governance environment rich with promise but still maturing. Families understand what strong governance looks like, and see its value. The next challenge is turning those aspirations into systems built to last.