Formality where everyone knows each other.
WHY IT STILL MATTERS
Informality works until it does not, and then nothing is recorded.
WHEN IT STOPS WORKING
A dispute among owners A death A sale or investment An investigation A bank or regulator asking questions
WHAT TO ESTABLISH EVEN WITH ONE OR TWO OWNERS
Registers maintained Decisions recorded Company and personal money separate Filings current
WHY RECORDING DECISIONS WITH ONE DIRECTOR
The record demonstrates that the company acted, and it protects you.
WHAT TO ADDRESS IN FAMILY COMPANIES
Who owns what, documented Who decides what What family members are paid, and for what work What happens on death or departure Whether non-working family members share in profits
WHY THOSE QUESTIONS
They are the ones that produce family litigation.
WHAT TO AVOID
Shares promised verbally Relatives working without terms Money taken without recording Assuming everyone understands the arrangement
WHY ASSUMPTIONS FAIL
Recollections diverge, particularly after a death.
WHAT TO PUT IN WRITING
Ownership Roles and remuneration Succession How disputes are resolved
WHEN TO DO IT
While relations are good.
WHAT TO REVIEW
The arrangements, as circumstances change.
WHAT TO RECOGNISE
That formality protects relationships rather than threatening them.
