All articles by Avi Abramovich

Model Family Covenant – Part 2 of 2

Suggested format of a family covenant with different clauses, as may be relevant, part 2 of 2, clausues 8-16. 9. Ownership and transfer of Company shares Review (and amend if necessary) ownership structure with regards to various share types: Decide whether the family members that hold a management share can appoint themselves and/or anyone on their behalf to the board of directors Set the value of shares held by the founders, in the event of their death or incapacity. Formulate the terms and procedures to be applied in the event that a...

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family covenant

Model Family Covenant – part 1 of 2

Suggested format of a family covenant with different clauses, as may be relevant, part 1 of 2,clauses 1-8. 1. Introduction Explanation about the family structure, the relevant assets, the nature of the family business and the manner in which the structure is to be managed.  In most cases, family assets are divided into the core business, being an active company/ies, on the one hand, and assets held by the family for investment purposes, on the other hand. You will find below a separate reference to each. 2. Definitions Define who is a...

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family covenant