What a family council really is: clarifying its meaning in family businesses

What is it about?

Family governance, especially the family council, is widely used in practice, yet research has defined it in limited and often ambiguous ways. Drawing on principles from the philosophy of science, we analyse 42 existing definitions and show that many contain inconsistencies, such as mixing family, ownership and business roles. We propose a clearer pathway for resolving these inconsistencies and explain how families can evolve into “business families” capable of using a family council effectively.

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Photo by Brett Jordan on Unsplash

Photo by Brett Jordan on Unsplash

Why is it important?

Our findings show that the concept of the family council, which is one of the most widely recommended family governance tools, rests on unclear and sometimes contradictory assumptions. In theory, this hampers conceptual progress and makes it difficult for scholars to compare family councils. In practice, it matters because families and advisors rely on these structures to manage complexity, plan succession, and preserve unity. Without conceptual clarity, family councils risk absorbing roles that belong to boards or family offices, creating confusion and even counterproductive outcomes. By identifying these inconsistencies and proposing precise criteria to resolve them, we provide a clearer foundation for designing governance mechanisms that genuinely support business-family continuity.