The ownership and operational structure of closely held companies provides opportunities for value creation and growth. At the same time, such structures create situations where the interests of various stakeholders in closely held companies may diverge. Closely held companies may need to take a different path to listed companies when resolving the legal and relationship issues that arise from such conflicts, and the stakes can be particularly high when factors such as control, family dynamics or the strategic direction of the business are at play. 

This session will offer practical tips on how to advise closely held companies when stakeholders’ interests may diverge, including:

• Navigating the dynamics between majority and minority shareholders, and related fiduciary duty considerations;
• advising the company in family disputes and stalemate/deadlock situations;
• balancing family interests against outside investor interests, and other unique considerations for family businesses;
• balancing trust with express legal rights and obligations in closely held company articles/organisational documents or other documentation;
• compensation considerations for founders, executives and other employees; and
• change of control / exit transactions.