Succession clauses and transfer
Before any handover, it must be checked whether the current articles allow the intended entry at all or only permit certain persons.
- Read the succession clause
- Review transfer restrictions
- Identify approval rights
Topics
Review articles for succession
The articles decide whether shares can be transferred, who must approve, who steps in after a shareholder dies and how management, vetoes, compensation and buy out rights work.
Back to overviewForm and resolutions
Amendments to the articles usually require formal steps. Voting majorities, notarial deed and register filings should not appear only at the end.
- Review majorities
- Plan the notarial deed
- Prepare register documents
Death, withdrawal and generation change
Succession must also work for unexpected events. The articles should state whether heirs enter, shares are acquired or compensation is paid.
- Regulate entry of heirs
- Review buy out by co shareholders
- Align compensation and valuation
Management and vetoes
A share transfer does not automatically create a suitable management structure. Management appointment, approval catalogues and vetoes need review as well.
- Clarify management position
- Review approval catalogue
- Reduce blocking risks
Typical client questions
- Are the existing articles sufficient for succession?
- Can heirs automatically become shareholders?
- Which amendments require a notarial deed?