Robin believes communication is key."This means explaining clearly to family members, management and other stakeholders who's going to be taking over, who's not and why not," he explains."There should be no smoke and mirrors."
He goes on to discuss a potential worst-case scenario in relation to a private company was the principal shareholder, for example the father, dying in the saddle without any successor and without having a will."The problem this creates is having to deal with the complications of intestate succession, which is state regulated," he says."You then have the situation where the state dictates who inherits, and it may be members of the family who are not appropriate or not involved in the business. In addition you've got the situation internally in the business where there is no-one in situ capable of picking up the reins, so it's a double whammy."
Turcan Connell uses trust structures which protect the company from renegade shareholders by conferring shareholder status on the trustees. These also use different classes of shares to distribute varying rights and dividend access.
Robin Fulton discusses succession planning in Business Insider
In an article in Business Insider, Robin Fulton discusses succession planning and the key to ensuring a smooth transition during this complicated process.