Meaning of Family Corporations

 Family- all the descendants of a common ancestor

 Corporation- a company or group of people authorized to act as a single identity
(legally a person) and recognized as such in law.
 Family Corporations- are those businesses owned exclusively or primarily by
family members.

Mechanism of Family Corporations: How does Family Corporations Work?

 The shareholders are the relatives and the stock is largely held by one family.
 Shareholders – an owner of shares in the company; may be referred to as
members of a corporation.
 Stock- are shares into which ownership of the corporation is divided.

Leading Family Corporations

 Leading- is an act of guidance or leadership

 Leading Family Corporations involves:
1. Selecting a name for your family corporation. It is important to include suffix in
the names to indicated the limited liability status.
2. Search for every business name registered in your state. It is important since
you can’t register a business name that is already registered in your state.
3. Appointing directors and various officers. Appoint and nominate your family
members in the board and officers.
4. Selecting a registered agent who will receive official correspondence on
behalf of the corporation. This agent need not to be an officer but must be
residing in the state of the incorporation.
5. Completing the articles of incorporation.
 Articles of Incorporation- contains basic information such as the name,
address, registered agent, names of officers, and the number of
authorized shares.
6. Creating corporate by laws.
  Corporate by Laws- are the constitution of the corporation. The outline
matters of corporate governance that aren’t necessarily mandated by
law. It includes every officer’s duties, decisions that will be made by
directors, decisions that will be made by shareholders, what will
constitute a quorum for a meeting, and how shareholders will transfer
shares.
 In creating corporate by laws, it is necessary to be familiarized on the
existing state law or constitution so that your created laws would not
contradict on what is to be observed by the general public.
 Make sure every shareholder signs the said bylaws.
7. Putting investments in a bank as a common fund. Create share certificates for
every shareholder that would display their name and how many shares each
owns and any limitations and restrictions with regards to their shares.

Important Notes:

 Family corporations exist to vest the business with limited liability or shield their
assets from creditors.
 It is important to limit and control the number of shares that become available to
non-family members.

Meaning of Non-Profit Organization

 Non-Profit Organization- is a business that has been granted tax-exempt status

by the Internal Revenue Service (IRS) because it furthers a social cause and
provides a public benefit. It is a group organized for purposes other than
generating profit and in which no part of the organization’s income is distributed
to its members, directors, or officers.

Leadership in Non-Profit Organizations

 Leadership- the action of leading a group of people or an organization

What is Non-profit Leadership?

 Good leadership is rooted in the ability to achieve growing and sustaining the
engagement of people to accomplish something extraordinary together.

Uniqueness of Leadership in a Non-Profit Organization

 The uniqueness of leadership in a non-profit organization is that it takes both

paid and unpaid people to fulfill the mission.
 Most non-profits engage their people initially through voluntarism.
 There is a “social value” to the work of non-profits that can’t be calculated solely
using a “financial value” equation taught in most business schools.
 The non-profit leader must provide a “social return” on investment as opposed to
a “financial return” that these same individuals would be seeking from an
investment in a business.
 The non-profit leader has to engage people to not only create a positive “profit or
financial bottom line” for the corporation but must also work equally hard with
people to show a measurable “social bottom line or social profit” resulting from
the work.
 It just became difficult since it happens in a community context which consist of
uncontrollable variables compared to a context of building or factory.

Seven Core Competencies of Successful Non-Profit Leaders

1. Financial Management. Guaranteeing to a diverse group of stakeholders that the

nonprofit is in good hands with a basic understanding of balancing financial
realities with social need is the key.
2. Fundraising. “Building nonprofit equity” a leader must have a competency in
attracting givers that their giving sustainable over time.
3. Human Resourcing. The nonprofit leader must know how to assign people to
task and manage those tasks and workers with a sense of fair accountability. The
leader must also possess cultural competency which brings out the best in
diverse people to work together to do great things.
 4. Program Knowledge. Every nonprofit is seeking to make a difference in a
particular area. It is incumbent to the nonprofit leader to have working knowledge
of that area.
5. Governance. Every nonprofit organization must have a board of directors that
must be well trained and competent enough to execute their roles and
responsibilities.
6. Planning. Every nonprofit must have a realistic plan.
7. Community Relations and Communication. A nonprofit leader isn’t going to get
very far if he or she isn’t interacting with, communicating with, and advocating the
mission to the community.

Meaning of Leadership and Change

 Leadership - the action of leading a group of people or an organization.

 Change- the act or instance of making or becoming different.

Meaning of Leadership in Times of Change

 Leadership in times of change simply means that it is an action of leading a

group of people or an organization in an instance of aroused differences.
 “Change is the only permanent thing in the world.”

Leadership in Times of Change

 There are 4p’s of Effective Leadership in Times of Change

1. Be Present. It simply means that during change, leaders must know their
own behavior and feelings. His or her approaches on change together with
knowing how these changes affect the team members. Leaders must be
emphatic and helpful enough towards the team members.
2. Be Positive. Leaders must look on the positive aspect of changes they are
facing. People generally prefer working on positive individuals and this is
especially the case during periods of change.
3. Be Proactive. Leaders must look for ways to contribute to the results and
consider volunteering for some of the new activities that inevitably arise in
times of change.
 Proactive- Creating or controlling a situation by causing something to
happen rather than responding to it after it has happened.
4. Be Prepared. Change is constant, and often required to achieve desired
results. For optimal success, all of us should get in tune with how we and
those around us manage change.