Keeping a business going when relationships break down

Marilyn Bell, Head of the Family Department, and Chris Wilks, Head of the Corporate and Commercial department at SA Law, write for SME and consider the risks of setting up a family business

Family businesses form the lifeblood of the UK's economy. There are a great number of reasons why family businesses are a fantastic venture – they usually have stability, enjoy lang standing tenures from employees, loyalty and commitment running right through their core and have intrinsic cultures that large businesses often struggle to match.

However, there are a number of risks to consider when setting up a family business – specifically how to avoid a total breakdown of the business if a key relationship crumbles such as a director or shareholder that can have a significant impact on how the business can be run going forward or could impact it's ability to continue trading in some scenarios. 

Head of Family Law Marilyn Bell and Head of Corporate Law Chris Wilks share their thoughts with SME Online, an online source of information for UK businesses, about how family businesses can avoid a total breakdown of the business is a key relationship fails and what not to do, including failing to document agreements e.g. when promising children a stake in the family business.

Click here to go to SME online to read the article.

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CONTACT CHRIS

If you would like more information or advice relating to this article or a Corporate law matter, please do not hesitate to contact Chris Wilks on 02071 835683 or 01727 798083. 

CONTACT MARILYN

If you would like more information or advice relating to this article or a Family law matter, please do not hesitate to contact Marilyn Bell on 01727 798009. 

© SA LAW 2018

Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them alone. You are recommended to obtain specific advice in respect of individual cases.