Agreements & estates
A family agreement: what was agreed at the table, written to hold.
The agreement is the end of the mediation and the start of a new order in the business. It is written in plain words, signed by everyone who sat at the table and, where needed, approved by a court or the probate registrar.
What a family agreement is
A family agreement is a contract between relatives who own a business or an estate together. It says who decides, who gets what, and what happens when something changes: someone wants out, someone marries, someone dies.
It does not replace the company's articles or a will; it brings them in line with what the family decided. Where needed, Itai amends those too.
Everyone gets a draft before signing and can show it to their own lawyer. We would rather they did.
In a family company
Who manages and who sits on the board; salaries and dividends; how to leave and at what price; who may come in.
And if the business grows or is sold, the agreement says in advance how it is shared.
In an estate
Who receives what from the estate; balancing in money when the shares differ; who manages the property until it is divided.
An agreement between heirs is filed with the probate registrar or the court, where it takes effect.
What such an agreement usually covers
Who decides
A decision on any investment above the sum in Schedule A requires three of the four.
Who works, who holds
A family member employed by the company is paid for the role, apart from their share of the profits.
How to leave
Anyone wishing to sell their share offers it first to the rest of the family, at the price set in Schedule B.
When things change
A shareholder's marriage or divorce will not pass shares to a spouse without the consent of all the others.
If we disagree
Any dispute over this agreement comes back to the table, to mediation, before anyone goes to court.
Sample wording only. Each agreement is written for its family.