A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 88
IN OUR EXPERIENCE,
HOWEVER, SETTING UP
MORE FORMAL
SYSTEMS OF
GOVERNANCE
HELPS INSUL ATE
BUSINESSES AGAINST
THE RISKS MENTIONED
IN THIS GUIDE AND
OTHER UNEXPECTED
EVENTUALITIES, AS
WELL AS MAKING THE
BUSINESS MORE
AT TRACTIVE IF IT
EVER NEEDS OUTSIDE
I N V E S T M E N T. I T C A N
ALSO BE DONE IN A
L I G H T T O U C H W A Y, S O
TH AT THE DECISION
MAKING PROCESS
REMAINS JUST AS
QUICK AND EFFECTIVE.
“
WHEN THINGS ARE
GOING WELL IT CAN BE
TEMPTING FOR
FA M I LY B U S I N E S S E S
TO BELIEVE TH AT THEY
DON’T NEED TO THINK
TOO MUCH ABOUT
GOVERNANCE OR TH AT
‘ G O V E R N A N C E ’ R E A L LY
MEANS MORE
BUREAUCRACY .
CHARLIE HEWLETT
CORPORATE
SENIOR ASSOCIATE
88
”
One way of potentially protecting
the business for future generations
might be to add restrictions in the
The family office and/or directors
articles of association/shareholders’
might consider arranging meetings
agreement and/or family charter
with the shareholders to discuss
which would prevent the transfer
and agree the support and guidance
of shares to third parties who are
the shareholders would like to have
not lineal family members. Any
in this area. These might include:
succession
governance
systems so that shareholders can
policy that has been agreed will
access appropriate legal advice in
clearly impact on the drafting of
good time; a procedure for dealing
those documents (and vice versa)
with confidentiality and publicity; and
and so it is vital that the principles
an agreed approach for appropriate
have been established as part of
communication/interface with the
any succession planning process
board.
plan
or
and have been recorded clearly and
accurately and that those who are
affected are aware of such plans
and policies and are content with
them.
89
