What to keep in mind
Negotiate voting arrangements, information, transfer restrictions, conflict resolution, valuation and exit procedures.
Unwritten family understandings can become difficult to enforce when interests diverge.
Distinctions often confused
A family agreement does not automatically override the company's bylaws or mandatory law.
Frequently asked questions
Can relatives agree on dividend policies?
Potentially, within legal and corporate limits.
Should the agreement provide a dispute-resolution method?
Yes, preferably before a conflict arises.
Informational content. It is not a substitute for professional advice.