Implementing a Family Governance Framework

Relevant For:

Family business owners and successors.

Key Points:

• Governance frameworks are crucial for succession and dispute prevention.
• Consistent, tailored documents reduce costs and disruptions.
• Key documents: Family and Company Constitutions, Shareholders’ Agreements, Buy Sell Deeds, Trust Deeds, Partnership Agreements.
• Seek advice for drafting suitable mechanisms.

Full Article:

Establishing and running family businesses often overlooks legal safeguards and mechanisms. The significance of a well-documented legal relationship typically becomes apparent only during critical events or disputes. When planning to transfer control and ownership to the next generation, a documented governance framework is crucial from the outset.

A comprehensive governance framework involves