Tomáš Demo for The Slovak Spectator: A family business can also be threatened by a dispute among its members

The greatest threat to a family business may not be competition or declining sales. The problem may arise within the family itself—due to a dispute among owners, an unprepared generational transition, or the sudden passing of the founder.

Tomáš Demo, a partner at Highgate Law & Tax, explains in an interview with The Slovak Spectator why family businesses should establish rules regarding succession, ownership, and asset management while there is still harmony among family members.

If the company’s founder dies or becomes unable to manage the company without having previously arranged ownership and decision-making arrangements, the business interest may become the subject of a protracted probate proceeding. If the founder was also the sole executive, the company may be left without anyone authorized to sign contracts, manage accounts, or communicate with banks and government agencies.

In the interview, Tomáš Demo also discusses what rules a family should establish in advance —ranging from the hiring and compensation of family members, to ownership and the transfer of business interests, to profit distribution and decisions regarding the company’s direction.

Holding structures and the protection of family assets are also important topics. A holding company can help separate accumulated assets from business risk, consolidate the family’s ownership in one place, and simplify the future generational transition.

The interview also addresses tax and legal issues related to the management of family assets, the use of foundation and trust structures, the distribution of funds to owners, and the risks that arise when corporate and private assets overlap.

You can read the full interview with Tomáš Demo on The Slovak Spectator:

If you are interested in this topic, please do not hesitate to contact us:

• Tomas Demo, e-mail: tomas.demo@highgate.sk

You can find more information on protecting the assets of (family-owned) businesses and their owners on our website in the ” Asset and Business Protection” section .

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If you have specific questions, you can also address them during a consultation with our partner Tomáš Demo, who specializes in asset protection and setting up legally sound and tax-efficient business structures. You can schedule a consultation here: