Roles and Responsibilities: What roles need to be filled and who is the most appropriate person for each role considering skills and expertise. Are we trying to fit a square peg into a round hole? Do we need to employ some professional expertise?

Decision Making: Who is ultimately in control? Who has the final say on major decisions? Would it be appropriate to create a "management team" with an independent professional advisor or mentor?

Remuneration: How are family members compensated for their time, effort and financial contribution to the business? Do non-contributing family members receive any benefit? Discounts on current remuneration levels in return for a greater share of capital in the future needs to be implicit not implied.

Succession Planning: Is family succession the right outcome or is a different exit strategy more appropriate? What are the individual's expectations?

Relationship Issues: What happens if one of the family wants to exit the business, dies or is divorced/involved in a relationship property agreement?



Having an understanding of all of the above issues and having this formally documented can assist to clarify the boundary between business and family and pre-empt conflict in the future.

Family businesses can also be subject to some adverse tax issues particularly in relation to transactions involving "associated" parties. In the current climate, it is advisable that family businesses work closely with their "extended family" of professional advisors to ensure compliance with all taxation and legal requirements.

If you would like to discuss any of the issues raised above please contact Kirsty Bullen on (09) 237 3384 or bullen@ct.co.nz for a free no-obligations initial consultation.