In practice, a family constitution is most likely to be adopted or revised at the time of generational change within the business. It can often be considered when the business is about to be passed on from the founder to his or her children. Suddenly two or more branches of the family can find themselves in charge of the business and unsure of where to go next. The transition from the second to third generation can further increase both the number of owners and the diversity of their ambitions for the business.
Generational change can be unplanned, typically as the result of the unexpected death or disablement of the existing proprietor. This possibility strongly suggests that the constitution should be drafted and agreed well ahead of the expected transition. Formulating a family constitution will take time to develop and may require a number of family meetings. Even if there isn't agreement on all issues, it will form a good basis for the family to work from when issues arise.
