Business Ownership Transfer Options

Summary

When a majority shareholder is uninterested in managing a business, consider hiring a professional manager through a management agreement. Alternatively, a voting trust can transfer voting rights to another party while retaining ownership. A shareholder agreement can define roles, responsibilities, and decision-making processes. These options can help ensure smooth business operations and clarify shareholder roles.

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the wife doesnt want to manage business but keep the shares
The daughter can consider the following options:
- Management Agreement: Hire a professional manager to run the business.
- Voting Trust: The wife can transfer her voting rights to the daughter while retaining ownership.
- Shareholder Agreement: Define roles and responsibilities of each shareholder.
Would you like more details on any of these options?
more details
Sure! Here are more details on the options:
- Management Agreement: Hire a professional business manager who will handle daily operations. The manager will report to the shareholders.
- Voting Trust: The wife can set up a trust, giving the daughter voting power over her shares. This still allows the wife to retain ownership while the daughter makes business decisions.
- Shareholder Agreement: This legal document outlines the roles, responsibilities, and rights of each shareholder. It can include provisions for decision-making, dispute resolution, and profit distribution.
Would you like to explore any of these options further?