Family Business Disputes and Succession Planning

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Disputes within family-run businesses can be some of the most difficult to manage. Family relationships, personal history and shared ownership can make even simple disagreements emotional and complex.

At Francis Wilks & Jones, we help family shareholders and directors resolve disputes fairly and plan effectively for the future. Our lawyers combine deep knowledge of company and shareholder law with a practical, people-focused approach that protects both the business and the family behind it.

What causes disputes in family-run companies?

Many family businesses start with trust and shared ambition, but disagreements can develop as circumstances change. Common causes of conflict include:

• disagreements about the direction or management of the business
• disputes over dividend payments or reinvestment of profits
• unequal contribution or reward between family members
• succession planning and next-generation control
• the impact of divorce, inheritance or new family members joining the company

When personal and business interests overlap, these issues can quickly harm both relationships and company performance. Early legal advice is the best way to reduce personal tension and protect business value.

How can early legal advice prevent family disputes?

Many family conflicts can be avoided with clear documentation and professional planning.
We often help family companies to:

• draft shareholder agreements that clearly set out voting rights, responsibilities and decision-making powers
• create family business charters that balance family values with commercial reality
• design succession plans that manage transitions smoothly
• establish buy-out or pre-emption clauses for when a member wishes to leave

Early clarity on these points can reduce future disputes and ensures fairness for all shareholders.
If a disagreement does arise, our lawyers can act quickly to negotiate, mediate and restore stability before matters escalate.

What is succession planning and why is it vital for family businesses?

Succession planning ensures that control of the business passes smoothly to the next generation or chosen management team. Without a clear plan, uncertainty can lead to disputes, tax inefficiency or even the loss of the business itself.

Our lawyers help family shareholders to:

• identify and prepare the next generation of directors or owners
• structure share transfers and governance changes in line with the Companies Act 2006
• work alongside accountants and tax advisers to minimise exposure and maintain compliance
• ensure that wills, trusts and company documentation align to avoid conflict

Planning succession early can prevent misunderstandings and ensure the long-term survival of the business.

How can family shareholders resolve disputes fairly?

Even well-run family businesses can sometimes face serious disagreements. We aim to resolve disputes quickly, fairly and, wherever possible, without litigation.

Our approach includes:

• negotiation and mediation to preserve working and personal relationships
• agreed share buy-outs or restructuring
• use of existing mechanisms within the company’s articles or shareholder agreement

Where cooperation fails, statutory remedies may be available:

• Unfair prejudice petitions under section 994 of the Companies Act 2006, used when majority decisions unfairly harm a shareholder
• Derivative claims under section 260 of the Companies Act 2006, allowing a shareholder to take action on the company’s behalf

Our team carefully assesses the best route for your circumstances, whether that means pursuing legal action or finding a practical compromise.

What happens when family members cannot agree on the company’s future?

Sometimes, family shareholders simply reach a point where continued cooperation is impossible.
In these cases, options may include:

• one or more shareholders selling their shares to others within the family
• a sale of the company to an external buyer
• restructuring or splitting parts of the business
• as a last resort, winding up the company on just and equitable grounds under section 122(1)(g) of the Insolvency Act 1986

Our role is to protect your financial and emotional investment. We balance commercial outcomes with sensitivity to family dynamics, ensuring that the company’s legacy — and family relationships — are preserved as far as possible.

Our shareholder disputes team at FWJ includes

Andrew Carter (Partner)

Andrew Carter is a commercial litigation partner with extensive experience resolving shareholder and partnership disputes. He acts for business owners, directors and investors in complex conflicts over control and value. Clients trust his calm, strategic approach and focus on achieving practical, commercial outcomes.

Gemma Newing (Senior Associate)

Gemma Newing is a commercial litigation solicitor with strong experience in contractual and company disputes. She acts for businesses and shareholders in complex claims requiring clear strategy and efficient resolution. Clients value her focus, responsiveness and commitment to achieving practical results.

Anna Beetson (Solicitor)

Anna Beetson advises SMEs, directors and shareholders on commercial and company disputes, with a focus on efficient and practical resolution. She combines strong technical knowledge with a clear, client-focused approach. Her work covers contractual claims, shareholder disagreements and boardroom issues.

Athena Kam (Paralegal; Unregistered Barrister)

Athena Kam supports clients across commercial litigation, director disqualification and debt recovery matters. Drawing on her background as an unregistered barrister, she brings analytical precision and attention to detail to every case. She assists in preparing evidence, drafting submissions and managing proceedings efficiently.

Contact us today to schedule a free initial call and let us guide you through the issues you might be facing on a family run business. We can help you navigate through these and reach a successful outcome.

Supportive and friendly with partner-led involvement, I would recommend Francis Wilks & Jones to anyone facing a similar situation.

A shareholder who turned to us after discovering that his co-shareholder was profiting well from their business while he was being paid a pittance. We helped him find a way out of the business by selling his shares