The LEGO Group today officially opened its newest regional distribution centre (RDC) in Tessenderlo, Belgium. The opening marks an important milestone in the company’s strategy to expand its supply and distribution network to support long-term growth in the market. Its location in Belgium will service the company’s omnichannel customers in Belgium, the Netherlands, Luxembourg, Great Britain, Ireland and northern France, as well as LEGO® Brand Retail Stores. LEGO factories in Nyíregyháza, Hungary and Kladno, Czech Republic will supply products to the centre, which will be operated by Kuehne+Nagel. Carsten Rasmussen, Chief Operations Officer of the LEGO Group, said: “We’re thrilled to celebrate the opening of our Belgium distribution centre. Expanding our supply and distribution network will ensure that we can continue to meet customer demand and bring learning through play to millions of children for years to come." "We’re grateful for the continued partnership we’ve had with Kuehne+Nagel and are happy to have them on board to operate the site.” Gianfranco Sgro, Executive Vice President Contract Logistics at Kuehne+Nagel said: “Today we celebrate the extension of a partnership that has continued for more than 12 years. Together with LEGO we live and embody values such as innovation, infinite possibilities of imagination and creation, continuous attention to the customer and the planet we live on." "We are particularly proud as from today we complete our range of offers with all our products (sea, air, road, B2C and B2B fulfillment centres) to guarantee an exceptional online and in-store experience.” Greater flexibility to reduce customer lead times, accommodate growth The distribution centre is the second in the company’s European distribution network, joining an existing centre in Jirny, Czech Republic. The centre is equipped to store up to 44,000 pallets and has an expected throughput of approximately 32,000 orders annually. It is co-located on the same campus as the company’s LEGO.com fulfilment centre, which will be stocked with product from the RDC. This increased capacity and agility will result in an average customer lead time reduction of up to two days for customers in scope. Operations have been designed with sustainability in mind as the distribution centre shares the same sustainability commitment as all LEGO operations to reduce the company’s absolute global carbon emissions by 37 percent by 2032. It has been built to BREEAM Excellent environmental standards, a third-party certification system that measures the sustainability performance of buildings. On-site solar panels and a wind turbine will generate significant direct renewable energy, while all heating will be provided through geo-thermal energy as part of the company’s efforts to minimise its environmental impact. The company will utilise the European Cargo Rail network to transport LEGO products from its factories, bringing an estimated savings of 2,000t CO2 per year compared with today’s standard use of road and truck Tessenderlo is one of many investments in the company’s manufacturing footprint. The opening of the Tessenderlo RDC is a meaningful milestone in the company’s strategy to increase flexibility and agility in its operations. The LEGO Group has also invested more than US $1B in two new state-of-the-art factories in Binh Duong, Vietnam and Virginia, U.S., on track to open in 2025 and 2027 respectively. Both of these factories will run on renewable energy and contribute to the local community though the creation of highly skilled jobs. The LEGO Group is additionally expanding four of its existing factories in Nyíregyháza, Hungary, Billund, Denmark, Jiaxing, China and Monterrey, Mexico to meet future demand and drive long-term growth. All expansions are currently in progress and on track to be completed within the coming years.

Succession planning is the linchpin for the longevity and continuity of family businesses, yet it remains a daunting challenge for many. This process, essential for the seamless transfer of leadership and ownership from one generation to the next, involves much more than just naming a successor. It requires a strategic and emotionally intelligent approach, addressing both the business’s future and the intricate web of family dynamics.   The Building Blocks Of Succession Planning Successful succession planning starts with identifying potential successors. This involves evaluating family members or key employees to discern who possesses the requisite skills, experience, and genuine interest in leading the business. Once potential successors are identified, training and development become paramount. Providing the necessary education and mentorship is crucial for preparing future leaders to navigate the complexities of the business world.   A clear and realistic timeline for the transition is another cornerstone of effective succession planning. This timeline helps prevent abrupt changes that could destabilise the business. Additionally, defining roles and responsibilities for both current and future leaders ensures a smooth transition, minimising confusion and overlap in duties, as well as ensuring that future leaders are developing the right skills to meet the future needs of the business too.   Addressing the legal and financial aspects of the transition, such as ownership transfer, tax implications, and estate planning, is essential to avoid future legal entanglements and financial complications. Throughout this process, maintaining open and transparent communication with all family members and stakeholders is critical. Clear communication helps manage expectations and reduces the risk of conflicts.   Lastly, contingency planning for unexpected events, like the sudden illness or death of the current leader, ensures that the business can continue operating smoothly regardless of unforeseen circumstances.   The Challenges: An Emotional And Complex Endeavor Despite its importance, succession planning in family businesses is notoriously difficult. One major hurdle is the emotional factors at play. Family dynamics and personal relationships often cloud objective decision-making. The process can stir up deep-seated emotions, leading to conflicts and disagreements.   Founders and current leaders frequently struggle with a reluctance to let go. Their emotional attachment to the business, combined with fears about retirement and doubts about their successors' capabilities, can hinder the transition process.   Another significant challenge is the lack of qualified successors. Not all family members may have the interest or aptitude to take over the business, creating a potential leadership vacuum. Furthermore, ensuring fairness and equity among family members, especially when some are involved in the business and others are not, can be a delicate balancing act. It’s crucial to avoid disputes over inheritance and ensure that all parties feel they are being treated fairly.   Complex family relationships further complicate succession planning. Differing visions, values, and interests among family members can lead to serious disagreements. Resistance to change from employees and stakeholders, who may be loyal to the current leader, can also impact morale and performance during the transition.   Lastly, many family businesses suffer from inadequate planning. A lack of formal succession strategies can lead to a crisis if a sudden transition is required, jeopardising the business’s future.   A Way Forward Succession planning is indispensable for the sustainability of family businesses. Addressing its inherent challenges requires meticulous planning, clear communication, and often, the guidance of external professionals to navigate the emotional and operational complexities involved. By prioritising these aspects, family businesses can ensure a smooth transition and continue to thrive across generations, preserving their legacy for years to come.

Sourcing the perfect ‘on-the-go’ Greek yogurt product is no longer a Herculean task thanks to the latest product range from Scotland’s largest independent dairy. Graham’s Family Dairy has launched Scotland's first Greek yogurt pouches in three flavours; natural, strawberry and honey. The product range, which is sweetener free and naturally high in protein, hits shelves as new data highlights the rise in popularity, with the value of pouch sales growing 12% in the past year [NIQ 52 w/e 25 February 2024]. The pouches will be produced in Nairn, with the family business investing more than £2m into its Highland production facility to produce the new pouches and key products within its protein range. The brand new product marks the dairy’s first foray into Greek yogurt, launching in stores from mid-June, with an initial rollout taking place across over 100 Lidl stores in Scotland this weekend, with a wider roll out across Sainsbury’s Scottish stores in late August. The 150g pouches contain up to 14g of natural protein and were designed to be the perfect snack for on-the-go families and health conscious shoppers looking for an indulgent snack. The demand for healthy and high protein alternatives continues to grow as reports show that two out of five consumers are interested in yogurts to replace traditional desserts*, with Greek yogurt widely recognised in the industry as being the biggest sub category within healthy yogurt. Robert Graham, Managing Director at Graham’s Family Dairy said: “We take pride in our family legacy and heritage, which from the offset has been driven by innovation. Our new Greek yogurt pouches have been specifically designed to appeal to the market after the huge success of our Protein 25 pouches, which fly off the shelves." "Alongside being a convenient and delicious natural dairy snack, our Greek pouches are naturally high in protein and sweetener free which sets them aside from many similar products on the market." “More and more, our consumers are looking for easy to ‘grab and go’, healthy, protein packed products - we’ve designed our Greek pouch and protein ranges to lend themselves to do just that. Regardless of convenience, one thing no one wants to compromise on is taste, and we’re really proud to have created a healthy, practical product without impacting on its flavour and rich and creamy texture.” Graham’s Family Dairy products rely on natural dairy goodness for great taste, using the finest ingredients and milk specially selected from family run Scottish farms in its Greek yogurt pouches and across its ranges. The family run business has grown through three generations and today 70% of households in Scotland and 30% of the UK’s households buy their home-grown products, making them Scotland’s No.1 dairy brand.

Arco, the UK’s leading safety provider, has once again been awarded a gold medal for sustainability by the world’s largest and most trusted provider of business sustainability ratings. After thorough examination of its sustainability performance by independent experts at EcoVadis, Arco has retained its “Gold” status for 2024, improving on its overall score since the company’s last assessment. The gold rating means Arco is ranked in the top 5 per cent of more than 120,000 companies assessed by EcoVadis. EcoVadis singled out Arco's leadership on environmental sustainability as 'outstanding' in comparison with its peers. Arco’s sustainability initiatives over the past year include the launch of a new Responsible hi-visibility clothing range, as well as the installation of more than 2,300 solar panels on the roof of the company’s National Distribution Centre in Hull. Jim Harbidge, head of sustainability at Arco, said: “At Arco, we continually review and improve practices across the business to ensure we deliver best practice in sustainability." “We are extremely proud of this award and what it means for our products, those who make them and our customers who share our aims and values. We still aspire to achieve the ‘Platinum’ award and will continue to find new ways to differentiate ourselves as a responsible choice of safety partner.” EcoVadis measures sustainability performance across the four themes of environment, labour and human rights, ethics, and sustainable procurement. Its rating methodology measures the quality of a company’s sustainability management system through three management pillars of policies, actions, and results.  A team of international sustainability experts analyse and cross-check companies’ data in order to create reliable ratings, considering each company’s industry, size and geographic location. EcoVadis reviews its performance rating approach each year in support of best practice in sustainability. Find out how Arco is taking action for a safer tomorrow .

In order to protect the continuity of a family enterprise for the benefit of future generations, there are three key areas that need to be addressed upon the business’ formation, namely family and corporate governance, ownership structuring, and succession planning. Here, we'll explore the structural considerations and processes that all family-run businesses must adhere to promote long-term growth, security and longevity. Governance Structures There are important questions that must be answered at the outset of any new enterprise, such as ‘How will the business be run?’  ‘Who will be responsible for making the important decisions?’ and ‘Who within the family will have a say, and what kind of gravity will their opinion have?’ Having robust governance structures in place determines the boundaries for family member involvement and formalises the areas of responsibility.  There are two distinct areas to consider when it comes to governance – namely governance of the business, and governance within the family itself. Family governance establishes a shared decision-making system based on a family's history, values, and purpose, drawing inspiration from corporate governance while prioritising communication over the day-to-day formalities. It enables structured discussions to take place on complex issues whilst facilitating family members' integration into the family and business network. Regular family governance meetings promote communication, decision-making, and understanding of the family's narrative and vision, often incorporating educational aspects about unity, wealth expectations, and business involvement. Equally, the formation of a Family Council acts as a liaison for family members outside the immediate business operation, ensuring diverse representation and involvement in the family's commercial interests. Business governance, on the other hand, is pivotal in reducing internal conflicts, delineating authority and decision-making processes within the business. Depending on the business's size, governance may involve a board of directors overseeing direction and control, or an executive board managing day-to-day operations and strategy. The ‘four-room’ model is recommended for clarity, dividing responsibilities among the owner’s room (board management and strategy), the boardroom (supervision and hiring), the management room (business strategy and operations), and the family room (shared goals and legacy). This will only be effective, however, if there is a clear ownership and role structure in place which is representative of the business’ goals. Ownership Selecting the appropriate structure for a family business in the UK requires careful consideration of various factors including legal and tax implications, desired control levels, the extent of business involvement, and estate planning objectives. Corporate structures, for example, can offer liability protection but require more in terms of compliance and organisational costs. However, for some family businesses, especially larger ones, the separation of management and ownership without compromising professional governance may be more beneficial. Considering what is best for the continued growth of the business, and protecting the prospects of those invested in it, is essential in determining the most fitting business structure. There are numerous options available, but not all will suit the business’ needs. Sole Ownership: Sole ownership is prevalent in the UK, especially among small businesses, due to its simplicity and low start-up costs. The main advantages include complete control over decision-making, ease of setup, and retaining after-tax profits. However, this business structure faces challenges such as a limited succession pool and the burden of unlimited personal liability, which may hinder funding opportunities due to perceived financial risk. Partnerships: Starting a family business as a partnership, as defined by the Partnership Act 1980, involves individuals working together with the aim of making a profit. While establishing a partnership can occur unintentionally and without a formal agreement, it's crucial, especially in family businesses, to have clear terms outlined to avoid complications. A family business structured as a partnership typically limits ownership to actively involved family members, fostering resilience and innovation through diverse perspectives. However, this model can also introduce competitive tensions among family members vying for specific roles, underscoring the necessity for clear governance. To mitigate potential disputes and articulate the allocation of profits, losses, and decision-making processes, instituting a formal partnership agreement is advisable. Partners should be aware that they bear unlimited liability for the business's debts and obligations, similar to sole traders. Limited Liability Partnerships (LLP): An LLP is a distinct legal entity offering its members liability limited to their investment and any personal guarantees. Unlike traditional partnerships, an LLP's structure requires adherence to an agreement detailing its operation, profit distribution, member responsibilities, and termination protocols. Members are taxed based on their income share from the LLP. However, an LLP entails more administrative tasks, including maintaining a members' register, preparing annual accounts, and public filing with Companies House, leading to higher administrative costs compared to traditional partnerships with fewer formalities. A private company limited by shares or guarantee: In the UK, most private companies are limited by shares or guarantee, meaning they exist as separate legal entities. The limited by shares structure limits shareholder liability to the value of their shares and allows for the sale of shares to raise capital, whereas limited by guarantee doesn’t involve shares and instead the company is owned by guarantors (members) with limited liability. The latter is often more suitable for non-profit organisations and management companies. Changes to membership are made easier with a company limited by guarantee as no share transfers are required. These structures involve more administration, including filing annual accounts and tax returns, but offer tax benefits and protection of personal assets in case of insolvency. Estate and Succession Planning Without the necessary structure in place to determine what happens when the business owner departs or dies, all of the above may be rendered redundant, and the business may struggle to emerge intact from the ensuing chaos as family members scramble for control. This is why estate planning and succession planning are crucial to a family business’ long-term prospects. Having a structure and process in place for both is vital. Succession planning in a family business focuses on ensuring the continuous management and operation of the business across generations, unlike estate planning which is mainly about transferring ownership. Both are necessary for the seamless transfer of roles and responsibilities to future generations in family businesses. When numerous family members are competing for top ownership positions in a family business, succession becomes difficult. In addition, it is challenging for the following generation to assume leadership when there is no succession plan in place. Businesses generally utilise succession planning as a means of streamlining the transition of ownership or leadership. It entails identifying the individuals who should be trained to take on new positions inside the business in order to accommodate future, inevitable, changes (such as death ore retirement). Succession planning acts as an ongoing contingency plan that should be annually reviewed and updated according to company changes, and any comings or goings of family or senior staff members. It involves assessing leader skills, identifying replacement candidates, and developing their understanding of the business and its operations to ensure they can take over roles effectively. This process is significant for both large and small businesses, with the latter focusing on preparing the next generation for leadership. The planning process requires considerable time and effort, with an emphasis on making sure that the right individuals with the appropriate future leadership potential are earmarked for succession, not just those who are oldest, or feel they have a familial right to take over. Its about considering what is best for the business, not satisfying egos, and if that means considering those who are not members of the family for senior roles, so be it. Remember, if the business thrives, the family will ultimately benefit in the long run. Planning for succession should begin early enough to prevent unpleasant and impromptu talks or dramas because succession is a journey rather than a standalone event. Strategic planning and the ability to adjust to changing conditions are made possible by a continual dialogue – remove any nasty surprises, and family members will be less likely to become upset. Conversely, estate planning is crucial for ensuring smooth ownership transferral. It involves creating a detailed transition plan that covers the regulation of ownership, asset distribution, and responsibilities for future generations. While families may rely on their business governance frameworks to handle these matters, unforeseen life events can complicate situations, making formal shareholder agreements and estate planning essential. These plans must consider a range of potential issues, including inheritance taxes, income distribution, financial treatment of non-contributing family members, spousal benefits, decision-making processes, crisis management, and liquidation scenarios. Addressing these uncomfortable topics early on is vital to avoid unexpected consequences and ensure business continuity across generations. Should you require any advice or support on how best to preserve the legacy of your family business, please contact the specialist family business team at Buckles  for a confidential, impartial consultation.

Following several significant new client wins, independent insurance broking and risk management specialist, TL Dallas, has bolstered its London team with the appointment of two corporate account executives. Michael Jobson and Ross Bullard are seasoned insurance professionals with 36 years combined industry experience and both are certified with the Chartered Insurance Institute (CII). Michael said: “After working across loss recovery, personal lines, commercial account handling and working with high net-worth clients for almost 18 years, I then became a specialist in the health and care sector, which faces unique challenges and has very individual requirements when it comes to insurance." “Throughout my 24-year career I always preferred working for independent insurance brokers, and that was one of the main reasons for my move to TL Dallas. I had heard great things about the family and employee-owned firm, and as TL Dallas had recently set up a dedicated health and care division, it made it the ideal move." “With complete freedom of thought and action, which is not always the case at some of the corporates, I can focus on delivering the very best service for clients. To be working with a dedicated team of professionals who all have the same goal of providing the best cover for the best possible price, and always responding swiftly and effectively to claims via the in-house team at TL Dallas, made the role hugely appealing.” Ross said: “I started out in the insurance industry 12 years ago in motor insurance, working for a broker in Southampton, before moving to another broker to specialise in insurance for parish and town councils. I spent eight years as an account executive in the local government sector at this firm, which was sold twice during that period." “Joining a stable firm like TL Dallas is a fantastic opportunity for me, and I plan to build on my network of contacts in my home county of Norfolk and beyond to introduce the array of services that TL Dallas has to offer. Being a broker is a varied and interesting job and I particularly like working with different insurers on complex cases. Every client is unique and supporting them with their insurance and risk management needs is extremely satisfying.” Polly Staveley, managing director at TL Dallas, said: “This double appointment reflects the significant growth the team is delivering in our city office. As we continue to build on our client base in the South of England, we also plan to recruit at least two more team members with the right ethos and experience over the next year or two to support our growth plans.” The TL Dallas London office is located the heart of the city at 14 Devonshire Square. With a 15-strong team in the city supplying commercial insurance products to businesses operating in every industry sector, TL Dallas also offers a variety of specialist polices, including books, collectables and demolition insurance, as well as having access to the wider group for private clients, trade credit insurance and independent financial services. About TL Dallas TL Dallas was founded in 1919 and is one of the UK's leading independent insurance broking and risk management companies providing a full range of commercial and personal insurance services. The fourth-generation family firm is owned by its management and team. Group managing director, Polly Staveley, and group director, Mackenzie Dallas, are both great grandchildren of the company’s founder, Thomas Lessels Dallas OBE. TL Dallas currently employs more than 165 people in its Bradford headquarters and across offices in Belfast, Cumbria, Edinburgh, Falkirk, Glasgow, Holmfirth, Skipton, Lincoln, London, Shetland and Stockport. The company is one of the founding members of UNA – the National Alliance of Independent Brokers.

The UK Innovation Corridor (UKIC), an economic region of global significance joining two of the country’s most productive cities, London and Cambridge, has announced that Willmott Dixon has agreed a three year commitment to become a strategic partner. Willmott Dixon will now take their place on the Board of UKIC alongside the 15 local authorities and six universities currently represented, creating a powerful collaboration of the public and private sector driving innovation, growth and cohesion across the region. The announcement of Willmott Dixon’s partnership with the UKIC coincided with the publication of the UKIC Growth Plan which demonstrates that the region is on course to almost double the size of its economy, growing from £189 billion to £350 billion by 2050. Commenting on the new relationship with Willmott Dixon, Jackie Sadek, chair, UKIC, explained that UKIC’s ambition had long been to establish a “ground up” partnership with the private sector. She added: “As one of the region’s largest privately-owned companies, we are delighted to welcome Willmott Dixon as a strategic partner of UKIC and our first private sector partner. Their commercial acumen and particular expertise in development will prove invaluable as this region looks towards a period of rapid growth.” Hitchin based Willmott Dixon, established in 1852, has its roots in Cambridgeshire and Hertfordshire, local to the UKIC region. A recent King’s Awards for Enterprise winner for sustainable development, the company has completed numerous projects in the region, including educational projects such as the Department of Materials Science & Metallurgy for the University of Cambridge and the European Bioinformatics Institute, Cambridge. Current projects include building a new head office for Hertfordshire Constabulary in Welwyn Garden City as well as a number of mixed-use regeneration developments in London. Speaking at UKREiif in Leeds, Stewart Brundell, Managing Director at Willmott Dixon for North London and the Northern Home Counties, explained that the company’s new relationship with the UKIC underscored the company’s commitment to connectivity, partnerships and seeing the region grow and prosper. Stewart stressed the need for businesses to leverage their collective strengths and learn from one another. “In this complex, fast moving and volatile world, no individual business can resolve the challenges that we have alone”, he commented. Stewart explained that Willmott Dixon viewed themselves as enablers, bridging the gap between public and private sectors, a role which he saw becoming increasingly important. Their aim was to foster an environment where “collaboration can thrive and innovation can flourish.” Stewart added that Willmott Dixon was looking forward to helping the UKIC drive forward a future of shared success and innovation.

The issue of succession for a family business is bound up in a complex combination of commercial and personal issues. In business terms, the aim will be to hand the business on to people with the skills and experience needed to protect the legacy of the business and build on the current levels of success. On a personal note, the owners of a family business will wish, as far as possible, to pass the business on to the next generation, giving their successors the chance to enjoy the same opportunities they did and build a dynasty for the future. There are some technical legal issues around company law which might impact on this intention, however, and in this article, we’ll examine some of those issues and offer advice on how best to achieve a smooth succession. Articles of Association Shares in a family business are treated like any other shares – as private property which the owner can treat as they wish to, without there being any obligation to buy and sell those shares to either individuals or the company. There are contractual, statutory and regulatory issues which complicate this, however, and the articles of association of the business are most likely to have an impact. The articles of association set out the purpose of a business and outline the regulations which will govern operations. Points set out in the articles of association usually include the following: The organisation and structure of the company The process of holding shareholder meetings How shares and dividends in the company will be issued and the voting rights enjoyed by shareholders How directors will be appointed and the responsibilities they will have The articles of association operate as a form of contract between the company and the shareholders, and a framework for governance of the company. Once drawn up, the articles – which will include the legal name of the company – can be accessed as a public record and are often held at the registered office of the company. The articles can be revised, particularly if this becomes necessary due to a change in the law or because a regulatory authority has demanded the change. Changing the articles in this manner would require a meeting with shareholders at which a resolution is passed. As well as offering a form of ‘user guide’ for the company as a whole, articles of association are often required when opening a company bank account or applying for business loans. Once in place, the articles act as a binding agreement between the company and its shareholders, and the type of change mentioned above can only be made via a special resolution which requires the agreement of at least 75% of shareholders. Transfer of Shares It is possible to gain more insight into how articles of association are drawn up by looking at model articles for private companies listed by shares, as published by the government. Of most relevance to the issue of succession is Model Article 26, which states that ‘The directors may refuse to register the transfer of a share, and if they do so, the instrument of transfer must be returned to the transferee with the notice of refusal unless they suspect that the proposed transfer may be fraudulent.’ This could cause issues with succession following a death unless the circumstances are covered by the Will of the deceased or a shareholders agreement which may be in place. The possibility, for example, is that the remaining board members, following a death, may disapprove of the beneficiaries to whom shares have been passed (perhaps because said beneficiaries have no interest in the company) and will therefore decline to register the transfer of shares unless it is being made to someone with whom they approve. Many shareholders agreements will contain clauses which require an individual shareholder to offer their shares for sale to other shareholders in circumstances such as their death, incapacity or – as an employee shareholder – upon leaving the company. If the other shareholders opt not to exercise their right to buy then share transfers will need to be approved by the board (as set out in Model Article 26), whereas if shareholders do choose to buy the shares the estate of the deceased will receive the value of the shares, rather than the shares themselves. A method for valuing the shares will generally be included in the shareholders’ agreement, making it simpler for the executors of any Will to value an estate including shares before a sale or transfer has gone through. There is a chance that a shareholders agreement won’t include a clause requiring shares to be offered for sale following the death of a shareholder, but even in these circumstances pre-emption rights may apply. Pre-emption rights on transfer of shares mean that the personal representatives of the deceased will first be expected to offer the shares for sale to other shareholders before simply transferring them to the beneficiaries in line with either the Will or the rules of intestacy. Shareholder Agreements Everything set out above helps to underline why anyone wishing a smooth succession – i.e. leaving their shares to future generations of the family – needs to take positive action to ensure that this happens, with particular regard to the wording of any shareholders agreement. The agreement should be drafted to ensure the following: There are no clauses obliging shareholders to sell their shares on death or on leaving employment Transfers of shares to family members such as children and grandchildren are treated as permitted transfers i.e. free from pre-emption rights Any transfers of this kind which are carried out properly should be approved by the board In some cases a more cast-iron clause could be inserted into the shareholders agreement, stating, for example, that only direct descendants of the named founder of the company are entitled to hold shares, and that the board does not have the right to approve transfers to any party not qualifying in this manner. Of course, the fact that a shareholders agreement can be changed with the approval of all parties or a specified percentage of the holders of voting shares, and articles of association amended through a 75% majority, means that there is always a chance, in any private limited company, that the provisions in a shareholders agreement are not set in stone. The commercial interests of the company will always trump family ties in the eyes of shareholders, sometimes even those shareholders with family ties, and so things could change at some point in the future. The overarching advice for anyone planning the succession of a family business on their death is that simply passing shares on in a Will is not be sufficient to guarantee a smooth succession without paying proper attention to what is set out in the articles of association and any shareholders agreement. It is probably true to say, therefore, that any succession planning, rather than being left until such time as that succession can be said to be looming on the horizon, needs to be at the forefront of your thinking from the very beginning, i.e. when the company is incorporated or if not at the earliest opportunity. Should you require any advice or support on how best to preserve the legacy of your family business, please contact the specialist family business team at Buckles  for a confidential, impartial consultation.

With the General Election a matter of weeks away, the focus is firmly on the UK economy. The latest CBI economic forecast points to...

In the bustling landscape of the UK's business sector, family-owned enterprises stand out as pillars of strength, not just economically...

Ringway has hailed the impact of its first fully electric highways maintenance vehicle, six months after reaching UK’s first agreement...

Vellayan Subbiah, Executive Vice-Chairman of Tube Investments of India (TII) and Chairman of Cholamandalam (Chola) Investment and Finance Co. Ltd., was named the EY World Entrepreneur Of The Year™ 2024 at an award ceremony held in Monaco's Salle des Etoiles. Vellayan was selected from among nearly 5,000 program participants that included 51 winners across 47 countries and jurisdictions competing for the global title. He is the fourth winner from India in the award's 24-year history. Vellayan is a transformative business leader with an ambition to change the trajectory of his country, his companies and his people. His professional journey, which began as an engineer and then a strategic consultant, shifted towards entrepreneurship when he started taking over leadership roles in his family's business nearly 15 years ago. Vellayan first successfully navigated Chola through the fallout of a troubled partnership amid a global recession, ultimately becoming the company's Chairman and growing its market capitalization 60x over the course his tenure. Starting in 2018, he took on leadership of TII, a 70-year-old manufacturing company, and began to transform the entire business through investment reallocation and acquisitions. Since taking over he's helped TII's share price grow 13x. TII's subsidiary, CG Power has just commenced building India's first outsourced semiconductor and test facility. Beyond his great business success, Vellayan has been unwavering in his commitment to sustainability and community welfare, driving initiatives that have propelled his companies towards significant environmental and social milestones and set new standards for corporate responsibility. Carmine Di Sibio, EY Global Chairman and CEO, says: "Vellayan possesses all of the qualities one looks for in an entrepreneur. The impressive growth of the businesses he's led have been remarkable, but his story goes far beyond numbers." "His humble and personable approach to leadership and his philosophy of enabling others to 'enter a better life' are the embodiment of what it means to be EY World Entrepreneur Of The Year. He also has an exemplary track record on giving back through education scholarships, health innovations and environmental stewardship. Congratulations to Vellayan, a truly deserving world winner." Vellayan Subbiah, Executive Vice-Chairman of Tube Investments of India (TII) and Chairman of Cholamandalam (Chola) Investment and Finance Co. Ltd., says: "I am deeply honored and grateful to be recognized as the EY World Entrepreneur Of The Year. As part of a fourth-generation family business, the spirit of entrepreneurship runs deep within me, and I continue to be equally inspired by those who came before and those who follow." "I'm steadfast in my belief that by approaching challenges as opportunities and committing ourselves to a path of self-improvement, there's no limit to what we can achieve. Thanks to my incredible colleagues who have made it all possible and I hope to further the legacy of past winners of this great award by continuing to elevate others along the way throughout my entrepreneurial journey." The EY organization hosts the annual World Entrepreneur of the Year event to celebrate the accomplishments of visionary leaders who are transforming industries, growing the economy and answering the call to address global challenges. The annual gathering brings together founders, CEOs and business leaders for a series of networking opportunities and workshops, culminating with the winning announcement. The EY World Entrepreneur of the Year 2024 was chosen by an independent panel of judges against four criteria: entrepreneurial spirit, purpose, growth and impact. This year's panel included a diverse and esteemed group of entrepreneurs from all over the world, chaired for the second consecutive year by Hernan Kazah, Co-founder and Managing Partner, Kaszek Ventures.