Date and Time:
August 18, 2020 4:30 PM - 6:00 PM
Session 1 –
Introduction to the idea of family-run businesses. A traditional family-owned business structure, taking its lead from the tradition of joint families, is headed by one or two members (siblings or parent-child) and further involvement of respective branches of such family members, which may go up to 2-3 generations. Statistics indicate that an overwhelming majority of youth work in their family-owned business in India however, only a fraction of such family businesses in India have a robust, documented and communicated succession plan in place.
Potential issues giving rise to family disputes that affect businesses:
- Inter-personal differences between family members.
- Death of patriarch/matriarch.
- Unclear succession plans.
- Lack of mitigation and contingency plans in corporate documentation.
- Rapid expansion and poor leadership.
Brief reference to a few leading cases of family disputes that have arisen over the years and the core issues that arose in such cases.
Anticipating disputes and mechanisms of resolution:
- Nature of property in dispute – immovable property, shares of companies, intellectual property, and partnership interests, etc.
- Filing of legal proceedings, civil suits, partition suits, challenging probate proceedings, dissolution of partnerships, criminal complaints, etc.
- Instruments such as family arrangements and memorandum of understanding that maybe entered into.
- Importance of estate/succession planning which will enhance the mitigating procedure such as formation trusts, execution of wills and codicils etc under the Indian Succession Act, 1925 in mitigation of potential disputes.
- Corporate documentation necessary to ring-fence the corporation against a fall out between family-members.
- Mediation of family disputes – necessary documentation
- Ankoosh Mehta
Cyril Amarchand Mangaldas
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