Family matters. Specialist legal advice and support to protect the future of your family business

Transcription

1 Family matters Specialist legal advice and support to protect the future of your family business

2 The oldest twenty family firms in the UK have collectively traded for 7013 years, and traded on average for 350 years each. Family Business United

3 What is a family business agreement??? A family business agreement (FBA), sometimes known as a family constitution or a family charter, is a non-legally binding document that provides a clear framework for how your family wishes to direct matters when it comes to the family business and wealth. It is a bespoke document that caters to the needs, values and characteristics of your business and family and can be thought of as a preventative form of mediation. An FBA is not a rule book. It is an agreement between family members which needs to be reviewed on a regular basis to ensure it meets your needs as they evolve. Nor is it a solution for existing problems and we suggest that any discrepancies are resolved before you begin the process of creating an FBA. clarkewillmott.com Great service... Great people...

4 Why have a family business agreement??? When it comes to family business and family wealth, personal and professional dynamics may become imbalanced. Taking the time to agree and document your family business goals, roles, structure, policies and protocols in an FBA can be invaluable as it is a step towards protecting both your business and wealth for generations to come. It can also provide clarity and improve communication by allowing your family to talk openly and honestly about their hopes, expectations, goals and concerns. clarkewillmott.com

5 What can be included??? Every FBA will be different and our advisors will help you to identify what is important for your family. Some things that you may find beneficial to include are: Your family mission or ethos. What is your vision for the future and how will you get there? A definition of individual roles, relationships and structure within the family. Who has authority, and who is responsible for what? Policies about remuneration, communication, leadership, ownership, transfer of wealth, employment and changes in the family, such as marriage or divorce Protocols. What is the procedure for making a decision? How will you resolve disputes? What is the process for a family member joining or leaving the business? Succession plans for your family business and family wealth. In addition to the above, our private client lawyers are able to prepare wills and/ or trusts for all family members involved in the family agreement to minimise the dispersal of your family wealth. Great service... Great people...

6 Family businesses... Account for two jobs in five in the UK private sector (9.2m people) Account for almost a quarter of the overall UK GDP Contribute 73bn of UK total tax revenues Generate 81.7bn per annum of UK tax receipts There are over 1,000 family firms with more than 250 employees Source: The International Centre for Families in Business

7 How Clarke Willmott can support you We have worked with small and medium sized family businesses with high growth, especially those that are going through significant changes, for a number of years. We understand that every business has different requirements and as a full service law firm, we can work with you to find the right mix of legal expertise for you. The areas of law most common to family businesses are: Corporate & Commercial Having acted for family offices in a broad range of sectors, our Corporate team has insight into the issues that your family business may face and can advise on maximising the value of your transactions whilst minimising the associated risks. In particular, we can assist with formation and governance, corporate transactions and investments, intellectual property, reputation management, and succession planning. Private Capital Our lawyers can help you ensure that your family business is handed over smoothly and in good order to the next generation, or is wound down in a way which provides the greatest benefit to the family and employees. In addition, we regularly advise on Wills and powers of attorney, including business powers of attorney, to help protect the business in the event of unforeseen injury or illness. We also provide tax and estate planning. Great service... Great people...

8 Clarke Willmott is a large firm that feels a bit like a family. There is no snobbery and pretension and, most importantly, they really want you to be successful. Client quoted in Chambers UK 2017

9 How Clarke Willmott can support you Family Our Family team regularly advise on matters involving relationship breakdown and divorce and can support you in going your separate as smoothly as possible. If one of the family member s main source of income comes from the business, or if they have capital invested in the business, we can advise on how the Court would approach the member s interest. This includes how best to protect the business interests through negotiated agreements within divorce proceedings, and pre and post nuptial agreements. The team also has regular involvement in matters involving protection of inherited family wealth and complex trusts. Employment Family businesses often have employees, owners or managers who are not members of the family and the needs of all staff have to be looked after. Our employment lawyers and HR consultants work hand in hand to cover all issues of people management. As well as advising on the key issues from an employment law perspective, we offer a holistic business support service to help you motivate and retain your team. Our specialists also deal with pension and HR issues. clarkewillmott.com

10 About Clarke Willmott Clarke Willmott is a national law firm with seven offices across England and Wales. We invest time in developing relationships with our clients and are known for our high level of service, straightforward manner and transparent fee solutions. Our lawyers work with an extensive client base of private businesses, sole traders, public bodies, high net worth individuals and charitable organisations. We advise on almost every aspect of the law and have market leading teams in: Agriculture Banking & Finance Commercial Services Financial Services House Builder Intellectual Property Private Client Real Estate & Constructionn Renewables Social Housing Technology Clarke Willmott has offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton. We have over 500 lawyers and support staff, including over 100 partners. We have been awarded the Law Society s Lexcel quality mark in recognition of our compliance and client care standards. clarkewillmott.com

11 Free initial consultation Clarke Willmott s team of lawyers can guide you through the process of creating an FBA that is right for your family. As a first step, we offer a free initial telephone consultation so we can answer any questions you may have and identify the specific needs and requirements of your business. This can be followed by a meeting with the key family members to discuss: The requirements of the agreement Timescale and ongoing contact Clarke Willmott specialisms required A cost estimate will then be provided for the preparation and finalisation of the agreement. Sound interesting? Get in touch: Phone: or info@clarkewillmott.com Website: clarkewillmott.com Great service... Great people...

12 Get in touch: t: / e: info@clarkewillmott.com Offices Birmingham 138 Edmund Street, Birmingham B3 2ES Bristol 1 Georges Square, Bath Street, Bristol BS1 6BA Cardiff 2nd Floor, Emperor House, Scott Harbour, Pierhead Street, Cardiff CF10 4PH London 1 Chancery Lane, London WC2A 1LF Manchester 19 Spring Gardens, Manchester M2 1FB Southampton Burlington House, Botleigh Grange Business Park, Hedge End, Southampton SO30 2AF Taunton Blackbrook Gate, Blackbrook Park Avenue, Taunton TA1 2PG clarkewillmott.com Great service... Great people... Clarke Willmott LLP is a limited liability partnership registered in England and Wales with registration number OC It is authorised and regulated by the Solicitors Regulation Authority (SRA number ), whose rules can be found at org.uk/handbook/. Its registered office is 138 Edmund Street, Birmingham, West Midlands, B3 2ES. Any reference to a partner is to a member of Clarke Willmott LLP or an employee or consultant who is a lawyer with equivalent standing and qualifications and is not a reference to a partner in a partnership.