Area of expertise | Family Statutes & Succession in Family Businesses

It is often believed that family businesses are particularly prone to conflicts. In reality, this is not necessarily the case. There are simply a large number of family businesses, and as a result, we often hear about conflicts within them. However, our experience suggests that conflicts in family businesses do not occur more frequently or quickly than in non-family businesses. That said, when conflicts do arise, they tend to be intense. This is because business and personal matters are often deeply intertwined in family businesses. Thuis Partners (TP) has frequently provided legal assistance in disputes between siblings, cousins, different branches of a family, and across generations working together in a family business. Almost always – sometimes through relevant legal procedures – we are able to reach a resolution. See also: shareholder disputes. Our expertise in this area is also crucial for setting up structures that are designed to prevent conflicts in the first place. Our in-depth knowledge and experience with conflicts within family businesses sets us apart from other advisors active in the field of family charters, such as notaries and accountants. Because we have seen where things often go wrong, we know what is essential to address in agreements upfront.

In a larger family business with multiple branches of the family, shareholders, and generations, there is a need for good governance. Governance that properly regulates shareholder control, as well as the process for appointing and composing the executive board, dividend policies, and the composition and powers of a supervisory board (RvC). All of this can be documented in a family charter, but also in agreements such as a shareholders’ agreement or executive regulations. With our extensive experience in family businesses, our lawyers are highly skilled at creating governance structures that are less prone to conflict.

A typical characteristic of a family business is the focus on succession by the next generation. This focus on continuity is one of the reasons why family businesses are often so successful. However, it is crucial to manage the succession process carefully. This includes determining the purchase price, the timing and method of payment, and the position of the retiring generation and family members who remain shareholders but are not involved in the executive board. It is advisable to arrange these matters well in advance. In succession processes, we often collaborate closely with other advisors to the family, such as tax consultants, accountants, and notaries.

In recent years, the family statute has become increasingly important. This document includes agreements on family values, core values, and the identity of the business, as well as arrangements concerning ownership structures, decision-making powers, and the composition of the executive board, supervisory board (RvC), or STAK board. The family statute also outlines how the business should be valued, the dividend policy, and the consequences of divorce or death of family members regarding shares and governance. Thuis Partners can play a central role in the creation of such a statute, including by acting as an independent professional to facilitate discussions with all family members about their wishes and the contents of the family statute.