Advising and amending incorporation documents of the holding entity and setting up operational rules and procedures for a family business.

Family at the Beach

Our clients, a married couple with very young children, are multi-nationals living in a low tax jurisdiction. They had investments throughout the Gulf Cooperation Council and South Asia, and consulted Arch because they had recently inherited other successful businesses in the region. They were looking for advice on how to best structure and operate their family business.

An establishment (trust) in a low tax jurisdiction under its internationally based legal code had been set up to use as the holding vehicle for their various businesses around the world. However, the establishment had been settled using standard off-the-shelf practice in a case where bespoke service was required. There had been no consideration given to the special needs for longevity and control in family businesses, nor to management of the businesses and investments that would be owned by the establishment.

Arch advised our clients on amending the establishment (trust) deed to ensure their wishes for the future stewardship of their family business would be granted. Together we structured the terms to ensure succeeding generations would follow the professional standard they had set and these lineal generations would be treated fairly.

Arch further advised our clients on business governance processes to ensure control over the various operating businesses and investments within the family business. A set of operational rules and procedures were formalized through a family council constitution and a number of executive agreements. Effective business governance helps them minimise risk whilst maximising opportunities for growth.

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