Transferring a family business

[PiterFreide]

Please advise on the best way to transfer a family business to the next generation so that the company remains under family control and is not sold due to disputes between heirs.

[John1998]

In such cases, a Swiss Foundation is sometimes used as a long-term ownership and governance structure. Instead of the company’s shares being held by specific individuals, they are transferred to the foundation, which becomes the legal owner of the business or a controlling stake in it. This structure helps to prevent fragmentation of ownership that can occur when shares are passed down through multiple generations. By placing the shares under the foundation’s control, the family can establish clear rules for how the company is managed, how profits are distributed, and how future decisions are made. The foundation operates according to a charter and governance principles defined at the time of its creation, which helps ensure continuity and stability in the management of the business.

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