How can I treat my children fairly if some work in the business and some do not?

 

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8. How can I treat my children fairly if some work in the business and some do not?

In practice, children who work for the business may be at an advantage: for example, if they are overpaid for their work, or if they have disproportionate control of decision-making. (In some instances, the opposite is true.)

The most straightforward way to avoid this is by using a suitable shareholders' agreement. Amongst other things, the agreement can include that family members will be paid and promoted on the same basis as other employees. It can also include measures to protect the rights of family members who control a minority of the voting rights.