How to protect your business from crippling family disputes

Once company shares pass to heirs, ordinary corporate decisions are generally governed by the company’s voting rules.

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A family business can survive its founder but struggle to survive the family. As ownership passes from one generation to the next, shares scatter among children, grandchildren and cousins.

Some heirs may want to sell their shares, while others prefer to retain the business or reinvest its profits. Disputes over management, dividends and ownership can leave a company unable to make key decisions.

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Note: The results are not exact but very close to the actual.