Webinar recording: Creating a sustainable family business – decision making and structure

We recently hosted the second in our series of family business webinars ‘Creating a sustainable family business’, presented by Silvia Vitiello, Yvette Jacobs-Lee, Alison Morris and Guy Sterling. The session focused on decision-making and structure within a family business and how this impacts not just the current performance of the business but its long-term future.

How to create a sustainable family business

We are delighted to share our key takeaway points from the webinar:

• Effective decision-making comes from having clarity and understanding of roles and responsibilities within the family and the business.
• All businesses should have a shareholders’ agreement in place, as it sets out the specific policies and rules for running the business and clarifies responsibilities.
• Creating a family charter is as important as its achievements. It gives shareholders and family members (however involved they are) a guide for how decisions are made and what they can expect from the business.
• Ensure you have a Will in place as a priority – do not put it off as it could cause loved ones issues in the future.
• Ensure you have two Lasting Power of Attorney in place – one for personal finances and one for business finances.
• Share options or gifts into trust are alternatives to outright gifts of shares to pass on control of the family business.
• Enterprise management incentive share schemes have certain tax advantages for qualifying companies and eligible employees, so this is something to consider.
• Growth share arrangements are a popular option to pass on future growth and manage upfront tax charges, without the same restrictions on business eligibility.
• Trusts can be complicated, but they are an effective tool for dealing with bickering family members, with a key benefit being that the settlor retains control.
• As well as the trust deed itself, the Letter of Wishes will be instrumental in guiding the trustees on how to deal with unforeseen issues.

We have decades of experience in the above areas mentioned, as well as every other aspect of running and growing a family business in the short-term and the far-off. To learn more about our tailored solutions and how we can help you, please contact our team.

Please note that due to the general election scheduled for 4 July, some of the above information may change.