Family businesses are the backbone of the Nigerian economy, but succession is often left until it is too late. When a founder dies or becomes incapacitated without a plan, the business can be paralysed by disputes among heirs, uncertainty about authority, frozen bank accounts and loss of key relationships.
Succession planning addresses who will own the business, who will run it, and how decisions will be made, and puts in place the legal structures to make that happen.
Key elements
- Ownership: how shares will pass to the next generation, whether directly, through a holding company or through a trust
- Leadership: who will manage the business, and how successors will be prepared and appointed
- Governance: board composition, independent directors and decision-making rules
- Family involvement: policies on family members' employment, remuneration and dividends
- Liquidity: how family members who want to exit can do so without destabilising the business
- Continuity: powers of attorney and arrangements in case of incapacity
Legal tools
- Holding company structures for family assets
- Shareholders' agreements between family members
- Family constitutions or charters
- Trusts holding business shares
- Wills aligned with the business structure
- Buy-sell arrangements, sometimes funded by insurance
- Updated articles of association and corporate governance frameworks
Our approach
Succession planning is personal. We listen to the founder and, where appropriate, family members, to understand their concerns and aspirations. We then design a plan that is legally sound, tax-efficient and practical, and implement it step by step.
When disputes arise
Where family members are already in conflict over a business, we advise on rights and options, and help resolve disputes through mediation or, where necessary, shareholder dispute proceedings.
