Naturally, the frames for capital expenditures are defined in the annual budgeting, but decisions within these frames can be made locally. This also reflects the flexibility and informality, which may stem from the family ties in the business. Even the non-family members of the Management Group (such as the area director) can act fairly autonomously and they are trusted to make good decisions and act in the best interests of the firm without excessive reliance on formal procedures, as the role of formal accounting in the MCS over subsidiaries illustrates.