Family Business & Succession Lawyers
We help families structure ownership and generational transfer before it becomes a dispute.
Overview
The move from founder to next generation is the most dangerous moment in a family company's life. The founder ran it on trust and personal presence; the next generation inherits shared ownership with no agreed decision mechanism. The usual result: a commercially successful company that stops making decisions within a year of the founder's absence.
We build the succession framework before it is needed: separating ownership from management, a family charter, restructuring ownership through a holding entity where appropriate, mechanisms for share transfer, valuation and exit, and policies on family employment and distributions.
Our consistent advice is to do this work while the founder is present and able. An arrangement the founder makes is generally accepted; one imposed after they are gone is resisted — and that difference is the difference between a company continuing and one liquidated after years of dispute.
The legal framework
Family business succession combines company law, inheritance and governance:
- The Companies Law on share transfers and restrictions on disposal
- The rules of inheritance and their automatic effect on share ownership
- The Personal Status Law on estates and wills
- Holding company structures and arranging ownership across generations
- The corporate governance regulations on separating ownership from management
- Family endowments (waqf) and similar arrangements as continuity tools
Situations we handle
A founder planning retirement
Arranging matters while present is far easier and far better accepted than anything imposed afterwards.
Ownership spread across many heirs
Fragmented shareholdings paralyse decisions. The answer is usually a holding structure with clear voting mechanics.
A dispute between siblings over management
Separating the owner's role from the manager's resolves most of these before they reach court.
The third generation joining
Employment and distribution policies need written rules, because numbers multiply and interests diverge.
An heir wanting to exit
A pre-agreed valuation and buy-out mechanism prevents a sale to an outsider or a partition claim.
Costly mistakes we see
- 1
Deferring until illness or death
An arrangement made under the pressure of the event lacks neutrality, is resisted by the parties, and can be challenged later.
- 2
Relying on family understanding
What holds siblings together does not necessarily hold their children. A written rule protects the relationship rather than threatening it.
- 3
Mixing family and company funds
This complicates valuation and division later and weakens limited liability protection.
- 4
Employing family members without criteria
The absence of a clear employment policy creates unstated privileges that become a source of dispute in the next generation.
How the procedure runs, step by step
Succession in a family business is planned before it is needed. A dispute among heirs over a live company paralyses operations immediately, because every decision needs a consent that cannot be obtained.
- 1
Examine the current structure and its risks
We review ownership and the registers: assets held in the founder’s personal name, undocumented shareholdings, or company and family money mixed together. That mixing is the first thing that produces a dispute after a death.
- 2
Build the family charter
The charter sets out who may work in the business and on what criteria, how profits are distributed, and the rules for the next generation joining. It is not binding like a contract, but it prevents the dispute from forming.
- 3
Structure the transfer legally
A holding company, a shareholders’ agreement with transfer restrictions, or a family waqf depending on the case. The instrument is chosen by the scale of assets, the number of branches and the nature of the business, not by convention.
- 4
Separate governance from ownership
We separate share ownership from executive management through a board and clear charters. An owning heir is not necessarily a capable manager, and settling that structurally beats settling it by dispute.
- 5
Document, implement and review
Wills and agreements are notarised, the commercial registers updated, and the arrangement reviewed every two years. An arrangement documented ten years ago and never updated creates as much dispute as it prevented.
Documents we will ask you for
- Commercial registers for all family entities
- Title deeds for real estate and shareholdings
- Any existing will or agreement among the heirs
- Financial statements for the existing entities
- A list of the heirs and their relationships
- The current management structure and executive roles
Fees and timelines
We deliver succession projects in stages: assessing the current position and mapping ownership, then the family charter and governance documents, then restructuring and implementation. Each stage has a written scope and fee, and you can stop after any of them.
On timing: the assessment takes two to four weeks. The family charter and governance documents usually take one to three months, because most of that time is discussion within the family rather than drafting. Restructuring depends on the number of entities and assets.
Common questions
When should we start succession planning?
While the founder is present and able to decide. An arrangement the founder makes personally is generally accepted; one made after their absence, or under the pressure of illness, is resisted and can be challenged.
What is a family charter?
A document governing the relationship between the family and the business: who works in it and on what terms, how profits are distributed, how shares transfer, and how disputes are resolved. It may not bind as a contract in itself, but it is translated into binding provisions in the company documents.
Do shares pass to heirs automatically?
Yes, a stake passes by inheritance unless the constitution or the structure deals with it in advance. That means the number of owners can suddenly multiply with people who did not build the business and do not know how to run it.
What is the benefit of a holding company?
It consolidates ownership in one entity with clear voting mechanics instead of fragmenting it across dozens of owners in each operating company. It simplifies decisions, organises share transfers, and separates ownership from management in practice.
How do we set the exit price for an heir?
Through a valuation mechanism agreed in advance in the documents: an independent valuer, a defined formula, or a multi-year average. Agreeing the mechanism before the disagreement is what stops an exit becoming a claim.
Can we prevent shares being sold outside the family?
Disposal can be restricted through pre-emption rights, approval conditions and transfer restrictions in the company documents. An absolute prohibition may not be effective, so it is drafted as a priority and valuation mechanism rather than a total ban.
Must every family member be employed?
No, and a written employment policy with competence criteria and a clear career path protects both the company and the family. The absence of criteria is what creates unstated privileges and then conflict.
Can a waqf be used in the arrangement?
In some cases yes, as a tool to secure continuity of assets and prevent fragmentation. It requires careful structuring and coordination with inheritance rules, and it is not a general answer for every family.
Related services
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We build the governance and compliance frameworks boards and committees need to decide soundly.
Family Lawyers
We handle personal status matters with discretion and respect, focused on family stability and the interests of any children.
Corporate Documentation Lawyers
We prepare assembly minutes, shareholder resolutions, powers of attorney and other corporate records.