Why Should We Have a Family Shareholder Agreement?
Family Shareholder Agreements are entered into by the family members in relation to the family business. They constitute a formal, legally-binding agreement between family members regulating their conduct in respect of the family business.
What Does a Family Shareholder Agreement Cover?
- How the family want the business to be run
- The goals and long term planning and strategy for the business
- The family members’ different relationships with the business
- How the family members should behave towards each other in the context of the business
We find that the process of working through the various elements of the Family Shareholder Agreement is a very important and positive exercise for a family business to undertake.
It can be a route map for both the business and the family moving forward. It can also be a way of reaching an overall agreement on how a number of issues should be addressed in the future. These issues can be whatever the family members think are relevant, but could cover:
- Future employment for the Directors of the business. Should these be from within the family or external Directors?
- Who should be employed in the business?
- What happens if somebody wants to sell their shares?
- Should all family members be entitled to own shares regardless of their involvement in the business?
- Should spouses and in-laws be entitled to own shares?
- What happens if there is dispute between family members in relation to the business?
- How does the family tackle a difference of views as to why the family are in business together or which direction the business should take?
The above list is not an exhaustive list and the things to be considered by each family business in the agreement will be unique to them.
The benefit to the business can be significant. We would also recommend that Family Shareholder Agreements are reviewed and amended on a regular basis to ensure that the route map is still the right direction for the business and the direction that the family members continue to wish the business to take.
He's got to keep a roof over our heads hasn't he?
Non-residential parents have to pay maintenance for their children; hopefully the amount can be agreed though negotiation and if not then the CSA will decide. Each case is different. If for example the Mum and the children stay in the family home then she may relinquish her claims over any other assets such as pension and savings in return. Our family law solicitors can advise on your specific circumstances.
How soon can I file for a divorce?
You can get divorced in England or Wales if all of the following are true:
- you’ve been married for over a year
- your relationship has permanently broken down
- your marriage is legally recognised in the UK (including same-sex marriage) Speak to one of our divorce solicitors to ensure you meet the legal criteria.
What am I entitled to in a divorce?
The aim when sharing out matrimonial assets is to be fair. Both spouses have to make full disclosure about their assets and debts before any decisions can be made about distribution, trying to hide anything won't work. Factors which are important when sharing out the assets include the current and future needs of each spouse and any dependent children; the length of marriage and the age, earning capacity and contributions of each party. Our family law Chesterfield team can guide you through this process.
Will I lose touch with my children?
Your aim should be that both parents still play an active part in the raising of the child/children. Usually, parents sort this out amongst themselves, although if there are problems, mediation can be a good way to resolve this. Our family law solicitors will advise you on Shared Care Agreements and Live With and Spend Time with Orders. Going to Court should always be the last resort when children are involved.
Will we have to go to Court during our divorce?
No, getting a divorce should be an administrative exercise only, and there are many options open to you that avoid going to Court.