The importance of shareholder agreements and family charters
by Matthieu Vandevoorde and Sophie Mercier
In the dynamic world of business, shareholder agreements and family charters play an essential role. They contribute to a company's stability and protect the interests of all parties involved. By preventing conflicts and providing long-term solutions, these documents create a solid foundation for healthy growth and collaboration within a company.
Shareholder agreements
Although a shareholder agreement is not legally required, it serves as an indispensable tool for clearly defining the rights and obligations of shareholders within a company. A shareholder agreement can cover a variety of topics, such as the (restricted or unrestricted) transfer of shares to third parties, the distribution of powers between the general meeting and the board, and the protection of minority shareholders.
The major advantage of a shareholder agreement is that it establishes rules and procedures to be followed in the company in advance, and agreed upon by all parties. This helps to prevent future conflicts that could jeopardize the continuity and growth of the business.
Family charters
A family charter has a different focus, specifically addressing the relationship among family members. It includes guidelines for the roles of family members within the company, such as any conditions for acquiring shares or holding certain positions. An example might be a requirement for mandatory external work experience or a prior assessment before a family member joins the company.
A family charter goes beyond just rules; it helps prevent family conflicts that could disrupt the business operations. Establishing clear agreements in a family charter encourages cooperation among family members and supports the long-term vision of the family business.
Strategic sustainability
Both shareholder agreements and family charters are powerful tools for maintaining continuity within a company. They help in a proactive manner to manage conflicts and provide stability by laying out clear guidelines. By properly drafting these documents, businesses and families ensure not only their own future but also their business legacy for future generations.
In short, creating a shareholder agreement and a family charter is not just a wise business move but also a strategic step to secure the sustainability and growth of both the company and the family in the long term.
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Matthieu Vandevoorde
Advisor Legal matthieu.vandevoorde@vdl.be
Sophie Mercier
Senior Manager Legal Sophie.Mercier@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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