When and why is it needed?
Sometimes, even time-proved partners may have disagreements in ways of the common development. But if you have to deal with a new partner, for instance, with spouse or children who inherited your former partner’s share? What has to be done if such disagreement is of principal character?
The reasons of inside corporate conflicts between owners may differ and may appear in any time (replacement of owner as a result of inheritance, difference in views relating to the development of business etc), but as a result all parties suffer losses.
It is better to prevent any conflict before it expands. Correctly organized structure of ownership and management of business and property is a cornerstone of the conflicts prevention and their settlement with minimum losses. It’s better to check and if necessary to correct the existing structure before the conflict begins. Then the future seems to be unproblematic.
How it’s made?
If you need to organize a non conflictive structure of business ownership and management the general approach concerning business development and management shall be decided. The agreed management can be reached by creating protective mechanisms that can prevent uncoordinated actions, and in case of unsolvable conflicts – to divide the balance with minimum losses.
In close cooperation with business owners we determine the most “vulnerable” moments of relations and develop mechanisms of conflict settlement.
If necessary, the business can be restructured in order to implement the coordinated mechanisms.
What is a result?
Business becomes more resistant to various internal conflict factors. Owners receive the freedom of disposing of their property. Actions of one of the owners (or his/her heirs) do not have negative impact on business or such impact is minimized.
When your business succeeds you rarely think that your current partners once may become irreconcilable opponents. But sometimes this happens… Reasons may differ but they do not really matter. Even if you trust your partner entirely it is possible that in future his/her spouse or children or other people may appear in his/her place; and these people would not have any agreements with you and possibly no mutual understanding. People who haven’t invested their energy in business are usually more likely to monetize the inheritance they received so easily. It usually affects the business negatively.
Nevertheless it’s not very hard to avoid such situations. Practically on each stage of business activity it’s possible to create non conflictive model of relations between owners that allows to dispose their shares in future without losses for common business in case of disagreements on business development. Such a model gives an opportunity to consolidate the most favorable relations by legal means and to spread them on possible heirs in future.
It’s better to think about it before the ideas of probable conflict or division of property appear in partners’ mind or before the possible heirs appear.
Russian legislation or national legislation of other countries cannot always be applied for protection of your interests or your business. At the same time there is always a possibility to use legal instruments of foreign law.
The process of creating of business ownership and management structure protected from uncoordinated actions of partners and their possible heirs is a hard one and can be done only in entire cooperation with the owners. If there is no mutual understanding between partners at first it is better to solve contradictions.
If you are interested in our services our agent can meet you and discuss the details of possible cooperation.