Family constitutions and ownership transfer
Introduction
Writing the family's rules on ownership, and moving shares between generations in a way the family accepts and the law enforces.
A family constitution sets the rules before they are tested: who may own shares, how shares can be sold or transferred, how they are valued, who may work in the business and how disputes are settled. Under Article 11 of the Companies Law, the family charter is binding and may form part of the company's articles.
The same article lets shareholders agree how their heirs will join the company, in person or through a company formed for that purpose. Used well, this keeps ownership from fragmenting across many heirs and protects the business from deadlock after a death.
We draft the constitution with the family, align the articles and shareholder agreements with it, and carry out transfers during the founder's lifetime, by gift, sale or restructuring, with the registrations they require.
How we help
What the work covers
Ownership rules
Who may hold shares, transfer limits, valuation and buyback.
Heirs joining
How heirs join the company, in person or through a family holding company.
Alignment
Articles and shareholder agreements consistent with the charter.
Lifetime transfers
Gifts, sales and restructurings during the founder's lifetime.
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