HomeSituationsOwnership & businessSiblings who own together
TN/SIT/15
Edition 2027 · effective 1 January 2027
Ownership & business · Siblings who own together
Brothers and sisters inherited a company. They did not inherit a way to run it together.
Sibling partnerships carry family history into the boardroom. Independent chairing and mediation separate the two.
§ 01What it looks like
Recognise it early. The earliest moment is the cheapest.
What you notice first
Small, and easy to explain away.
- Board meetings repeat family arguments
- Active and passive owners resent each other
- Dividends versus reinvestment divides the family
- Spouses and children are drawn in
What waiting can cost
Usually more than the original issue.
- The business
- The family
- The next generation’s inheritance
§ 02The Neutral route
Usually: Neutral Chairing.
An independent chair makes decisions possible; mediation deals with what lies underneath.
Neutral Chairing
The body decides. The chair keeps the process fair.
Also used · Binding only if the parties sign an agreementMediation
The parties decide. The mediator never imposes.
§ 03The steps
What a good process looks like.
- Appoint an independent chair for owner meetingsBefore anything else01
- Agree a dividend and reinvestment policyThe moment independence enters02
- Mediate role and exit questionsWhere the work is done03
- Draft a shareholder agreementSo it holds04
§ 04Prepare and avoid
What to bring. What to leave out.
(Bring)
01
Shareholding and governing documents
02
Financial history
03
Each sibling’s goals
04
Family relationships map
(Avoid)
✕
Mixing family events with business decisions
§ 05Your version
Every situation is different. Describe yours.
§ 06Related