Family statute

A family statute ensures continuity and harmony within your family business in the Rotterdam region. In family businesses, the family and the company are closely intertwined. This intertwining starts from the very first steps on the entrepreneurial path. A partner and any children quite quickly feel a sense of involvement in the other person's or parent's business, respectively.
As the business grows, many entrepreneurs feel increasingly responsible for their staff. An interaction usually develops between the family and the staff. In many entrepreneurial families, children at some point have holiday jobs within the parent's business. As any children develop more and feel drawn to the business, the desire may arise to transfer (part of) the business to one or more children.
At that point, but also when family members start doing business together at the start, you will see business relationships develop between the same people in addition to family relationships. A birthday or other holiday can then suddenly become a shareholder meeting or board meeting. This need not be a problem, but it does indicate that you cannot separate family relationships from business relationships.

Joint principles incorporated into a family statute by our team in Rotterdam

Before more than one family member is in the business, a whole range of private and business matters need to be discussed. Discussing joint starting points benefits understanding and provides guidance. These joint starting points are laid down in a family statute by our notary office in Rotterdam. Such a status goes far beyond the legal recording of a number of matters. It also includes moral principles, vision of the future and rules for conflict management.
A family statute provides a good basis to elaborate on in further agreements, amendment-notary-rotterdam">company statutes, share transfer agreement-rotterdam">shareholder agreements or notarised powers of attorney.

Code of conduct of a family statute of your company in Rotterdam region

Companies as well as families are subject to constantly changing circumstances. Contracts and notarial documents can therefore cover, prevent or resolve much, but not everything. For that matter, the same applies to family statutes. A family statute will include a code of conduct according to which those changing circumstances can lead to adjustment of agreements within your company in Rotterdam.
The purpose of a family business is often not to achieve short-term goals, but to survive in the long term. In many cases spread over several generations. It is of great importance that this succession is properly arranged. Of course, there are differences of opinion between generations. But the better things are organised, the greater the chance of a vital family business. Good agreements and ground rules offer direction. As a result, conflicts and problems can be avoided as much as possible.

What exactly does the family statute entail?

What does a family statute entail for your company in Rotterdam or surroundings? As the word suggests, it contains the way in which the interests of the family should be dealt with. In most cases, the presence of a family business in Rotterdam or elsewhere is the main reason for drawing up a family statute. In it, the family lays down, for example, what is decisive; the family interest or the business interest and, of course, how they relate to each other. Of course, ownership of the company is an important issue. For example, how will succession be handled? How does the transfer work? What guidance is enlisted? What happens if there are multiple candidates? And how do you deal with doubts about the performance of family members? Control and decision-making are also an important part of the family statute, which our team in Rotterdam drafts for you.
In a family business, the structure of the board is very important. Different levels can be considered. Level voting rights shares, level family holding company and level company. Can a board of directors only be formed by family members? Or is it compulsory or not?

Which family members get which function within the company?

In every family business, the question arises: what careers are available to family members? Are there training and experience requirements? Who judges the family members on their performance? Can the 'external' director objectively assess the children of a family member/owner? With regard to ownership, a family statute also addresses important issues, such as: can non-active family members also acquire shares? How do you keep the circle of shareholders limited; or is that exactly what you do not want? Do partners of family members play a role and what happens if the marriage ends in divorce? Further topics include salary and other emoluments. The articles of association determine which body decides on these topics and what should happen if there is a difference of opinion.

The importance of good communication

Another important issue is communication. In short; who hears what at what time and how? Because the purpose of the statute is primarily to achieve harmony within the family and consistency with the business. For cases where this is not possible, the dispute resolution procedure, which is part of a good family statute, offers a solution.
As mentioned, a family statute for your family business in the Rotterdam region is not a given. Therefore, it is wise to do regular maintenance. Both soft and legal rules are regularly subject to change. The family statute need not be a legally binding document, but legal binding documents do flow from it. Most important, however, is the support of the statute within the family and the company. After all, this leads to the statute actually being followed. All in all, enough material to think about the usefulness of a family statute within your situation in Rotterdam.

Need more information? Give us a call!

For more information on drawing up, maintaining and elaborating a family statute, please contact our office in Rotterdam. For questions or to make an appointment, please contact us by calling +31 (0)10 285 88 88. We will be happy to assist you.