Together at the table all year round?

Adverit AntwerpAntwerp, Belgium

Is there a more fitting time of year than now, with the holidays approaching, to write a newsletter about family businesses? Perhaps now is in fact an ideal moment to reflect on the functioning of your family business and the possibilities available for resolving certain conflict situations.

In Belgium, 84% of companies are family businesses. They clearly represent a major economic interest.

In a business led by family members, it is not always clearly defined or obvious where the family stops and the business begins, or vice versa! What if one of the two dominates, so that at the Christmas table the only possible topic of conversation is the monthly turnover figures, or what if everyone stays away from that same table because no agreement can be reached on a transfer within the business?

A family business can be divided into the following three aspects: family - business - ownership.

Everyone within the family and within the business belongs somewhere, in one or several of these aspects. Depending on this position, there are different roles and tasks, but also different expectations.

When all aspects are in balance, this constitutes the strength of a family business. When one aspect dominates, a (risk of) conflict arises. In the context of mediation within a family business, the challenge is to bring the three aspects back into harmony with one another.

Let us take the classic example of a family business transfer.

The second generation has already been active in the business for some time and would like to take over management. For various reasons, the founder is not ready to take this step. Mediation, or a mediation-oriented approach, within a family business can be very valuable in clarifying the interests of everyone involved, which can in turn bring clarity about the future of the family business.

In the context of a transfer, the following matters, for example, can be discussed:

  • What is important in the transfer of the family business? What is important in this regard for the business itself, and what is important for the members personally? What is each person involved concerned about with respect to this transfer? What are the concerns of each family member? What is everyone’s goal?
  • Which approach is most appropriate for the family business: retaining family control, selling to third parties, keeping management in family hands, placing day-to-day management in the hands of…, transferring day-to-day management to…, a management buy-out, …
  • Which approach do you personally have in mind?
  • What will you definitely not do?
  • Are there any sensitive topics regarding the transfer?
  • What steps have already been taken: has day-to-day management already been transferred, or has the transfer only been considered so far? What is everyone’s role in this?
  • …

It is also possible to choose to draw up a family charter. A family charter is the constitution of the family business. It can contain everything that the business and those involved need, such as the vision for the future of the family business, the objectives (growth, dividends, …), the family values and rules of conduct, arrangements regarding ownership and control, the careers of family members, hiring external staff, remuneration, charitable causes, conflict management, …

Please do not hesitate to contact us. We can guide you and your family business through this process!

Related practice areas

Corporate law Civil law

Other insights from this firm

View all legal insightsView all
Recent law offers partners protection: New right of opposition for uninvolved parties in judicial proceedings Corporate lawCivil law This article discusses the law of 21 April 2024, which introduces a new right of opposition into the Belgian Code of Companies and Associations for partners of the general partnership (maatschap), the general partnership under firm name (VOF) and the limited partnership (CommV). Partners who were not a party to judicial proceedings against their company can now lodge opposition against the judgment. Will banks or investment groups deny you capital because your ecological footprint is too large? Corporate lawCommercial law This article discusses whether banks and investment groups can refuse companies capital based on their ecological footprint, focusing on the EU climate agenda, ECB stress tests and the emergence of ESG scores.
Who was driving the company car involved in an offence? Not just a casual request for information from the public prosecutor's office. Transport lawCorporate law The article discusses the obligation for companies to disclose, at the request of the public prosecutor's office, the identity of the driver of a company car following a traffic offence. It highlights the serious consequences and fines when this request for information is not answered in time. The sky is the limit, until the plane goes down… join our seminar on April 29. Corporate lawCivil law This article announces a seminar on April 29 about the importance of a shareholders' agreement when starting a collaboration. It explains how clear agreements made in advance can prevent later conflicts and costly legal proceedings between business partners.
General Terms and Conditions, fine print of great importance … Commercial lawCorporate law This article discusses the usefulness and advantages of general terms and conditions in agreements and explains under what conditions they are enforceable against a contracting party. Goodwill at the end of a franchise agreement: is there a right to compensation? Commercial lawCivil law This article examines whether a franchisee is entitled to goodwill compensation upon termination of the franchise agreement. It discusses the absence of statutory regulation in Belgium, relevant European trends, and the importance of a clear contractual arrangement.
Clear agreements, a worry-free transfer. Commercial lawCorporate law This article discusses the risks of unclear agreements when transferring a client portfolio. Using an example, it shows how disputes can arise after the transfer and how clear contractual agreements can prevent this. Protective attachment of your debtor's bank account: the ultimate pressure tool…? Civil lawCommercial law This article discusses garnishee attachment (protective attachment in the hands of a third party) on a debtor's bank account as a means of pressure to collect outstanding, undisputed claims. It addresses the conditions for such an attachment, the difference with executory attachment, and the debtor's ability to object to it.

Learn more about Adverit Antwerp

This article was contributed by Adverit Antwerp. Visit their website to learn more or discuss your situation with their legal team.

Visit local website (opens in a new tab)