Ken McCracken

This Practice Note considers the advantages and risks involved in employing family members within a family business and the need to balance these advantages and risks. The Note then considers how the risks can be managed by putting in place an effective family employment policy.

This Practice Note considers governance of the family business, including natural or organic governance systems and formal governance structures and policies.

This Practice Note considers the types of owners in a family business and, in particular, the difference between ‘value-out’ owners and custodians. The differing attitudes of these different types of owner to selling shares and to selling the business is discussed, as are other issues such as whether spouses should be made shareholders or not and whether all shareholders should be required to work in the business. The Practice Note also considers the possibility of consolidating ownership in family branches and the setting up of a Shareholders’ Assembly or Shareholders’ Council as a forum for owners to agree policies governing ownership.

This Practice Note provides an overview of a family constitution, including a list of contents for a family constitution. Note that other names for a family constitution include a family charter, a family creed or a family protocol.

This Practice Note considers five distinct stages of succession planning: preparation, triggers, exploration, choice and implementation.

This Practice Note considers selling the family business and includes a possible agenda for a meeting with the current owners and the rest of the family who will be affected by whatever decision is reached. It also considers the technical issues that might arise on the sale of family business and the circumstances in which a family buyout may be considered.