“Review policies with your lawyer on a regular basis,” by Samuel Nagler, Family Business Magazine, May/June 2013
Leadership and other transition issues may be frequently discussed, and sometimes put into writing, but without the proper structures you could find your policies falling short at the worst possible time — in the midst of an unexpected change.
Whether your organizational documents have served you well historically or you haven’t looked at them in years because no problems have come up, a failure to examine transition policies can leave you vulnerable when change takes place.
Don’t wait until an owner is dying (or passes suddenly) to review other owners’ rights or obligations with regard to purchasing shares. Typically the operative documents set forth specific timelines for exercising such rights, but it behooves you to prepare in calmer times.
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