Family Services
Family governance – a modern approach to asset protection
Many families are reluctant to approach the topic of family governance. This is probably because it goes to the very core of the
family’s approach to the family business and the organisation of the family itself. Maitland can help. We have a solid yet innovative
approach to family governance. We view governance as paramount when it comes to the long-term preservation of family wealth.
Why the need for governance?

Recent studies have illustrated that only
six percent of family businesses survive
into the third generation. Proper
governance can help avoid this situation.
We find that while a family will often take
advice to optimise its tax position, failure
to consider the long-term preservation of
the family business in the context of
conflicts that may arise between
members of the next generation can be
the cause of long running and often very
bitter litigation.
As much as consideration needs to be
given to the future ownership of shares in
family business itself, so the family’s
wealth and the preservation of that wealth
for future generations should be
approached with careful throught and
planning.
Maitland can assist with identifying the
family’s goals and values, putting proper
procedures in place and carefully
documenting effective governance
mechanisms.
How governance can help
Governance can help to address the
following type of situation:


The goals and wishes of the current
head of the family may differ widely
from the ambitions of the next
generation.
Consideration needs to be given to
the marriage or divorce and
remarriage of successive generations
as well as the everyday tensions of
sibling rivalry.
Larger families turn increasingly to
the establishment of family offices to
manage their affairs and, hand in
hand with this, is the notion that the
whole of the family should be
involved in governing its own future.
But what of the members of the next
generation who have no desire to be
involved in the family business?
What about the division of wealth
between non-participating family
members?
Family solutions

Family council and advisory board
incorporating independent nonfamily members

A family constitution which deals
with:

information flow

membership of the family
council/advisory board and
associated voting
mechanisms; and

beneficial distribution policies –
in particular relating to
dividend policies for the family
business and distributions of
income and capital from
family trusts.
Our approach
We work together with you to gather
information about the family covering the
following:

What do we want for the next
generation?

Who are we? (What is the family
DNA?)

What do we want for the family
business?

How do we decide matters?

Who owns the assets?

Who manages the assets?

What are the constraints?
Solutions
Once we have the answers to these
questions and more, there are any
number of tools available to put the
family’s wishes into place. Some of the
following are solutions we have put in
place for families and family businesses:

Matrimonial arrangements –
agreement of the second
generation to a family policy of
matrimonial/pre-nuptial/post-nuptial
contracts.
Family business solutions

Board of directors – involving
independent advisers to act with
the second generation.

Highly bespoke shareholders’
agreement – taking into account
established family DNA as well as
clearly defined business ethos.

Use of trusts to hold shares –
beneficial interest can pass to the
family beneficiaries but voting
control is not unfettered.

Use of key man insurance policies.
Solutions. Considered.
This publication contains general information only. Maitland as a group or any of its member firms or affilated entities shall not be held liable for any loss
whatsoever sustained by any person who relies on this publication. Via this publication Maitland may not be seen as rendering accounting, business,
financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action that may affect your finances or
your business, you should consult a qualified professional adviser..
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Estate planning

Careful will and estate planning.

The use of family trusts and
governance within the trust (protector
committee, appointors, reserved
powers).

Jurisdictionally tailored succession
plan (taking account of limitations of
private international law, forced
succession and tax on the transfer of
wealth).
Investment planning solutions


Working with the family’s appointed
investment experts to ensure that the
agreed investment strategy is tax
efficient.
Agreeing the scope of involvement
for a family investment committee.
About Maitland
Key contacts
Maitland is a privately owned,
international group that provides legal,
fiduciary and fund services to private,
corporate and institutional clients.
Paula Bagraim
We provide the highest levels of expertise
and competence and work in a way that is
uniquely personal, proactive and
responsive.
[email protected]
We work with our clients and not just for
them, from 15 offices across 12 countries.
Maitland is one of the few companies in
the world with the breadth of knowledge
and insight to create integrated,
comprehensive solutions, across multiple
jurisdictions.
Monaco
Cape Town
Tel: +27 (0)21 681 8883
Michael Solomon
Tel: +377 97973181
[email protected]
Anthony Markham
Isle of Man
Tel: +44 (0)1624 630024
[email protected]
Iris Harvey
London
Tel: +44 (0)20 3077 1217
[email protected]
John Kleynhans
Luxembourg
Tel: +352 (40) 250 5427
[email protected]
John Mills
Luxembourg
Tel: +352 (40) 250 5400
[email protected]
For further information on Maitland
please visit our website at
maitlandgroup.com
This publication contains general information only. Maitland as a group or any of its member firms or affilated entities shall not be held liable for any loss
whatsoever sustained by any person who relies on this publication. Via this publication Maitland may not be seen as rendering accounting, business,
financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action that may affect your finances or
your business, you should consult a qualified professional adviser..
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