Legal tips for family firms

LEGAL contracts and agreements are as important in family businesses as they are in general business, a Corporate Seminar in Galway was told yesterday.

Gerard Ryan of O’Donnell Sweeney, Solicitors, said there was a requirement for family run business in Ireland to put in place appropriate legal agreements and to formalise relationships prior to setting up in business or to taking on family members as staff or introducing them as shareholders.

“Setting up a family business as a private limited company allows for smooth succession in the case of a death in the business and flexibility in the transfer of assets to the next generation. However, attention must be given to areas of potential conflict so that measures can be put in place to deal with them before they arise,” he said.

Tony McGovern also of O’Donnell Sweeney, Solicitors, said in the last few years the body of law applying to companies has grown substantially.

“With the advent of the Office of the Director of Corporate Enforcement and the introduction of the Companies (Auditing and Accounting) Act 2003, the obligations on Company Directors grow daily. It is now more important than ever that directors are aware of the obligations placed on their companies and ensure that they comply.”

The theme of the Seminar was Corporate Law and Tax Issues Facing SMEs in Ireland and it was attended by business owners and senior management from throughout Galway.

The seminar is part of a series of corporate seminars being run throughout Ireland by O’Donnell Sweeney, Solicitors.