TRANSFER OF A BUSINESS SHARE IN A LIMITED LIABILITY COMPANY WHEN TRANSFERRING TO THE NEXT GENERATION
DOI:
https://doi.org/10.30925/zpfsr.46.1.6Keywords:
transfer of business shares, business shares as gifts, inheritance of business share, limited liability company, family company.Abstract
Membership changes in companies can be complex and challenging for various reasons. The majority of members of a limited liability company, who are often (but not necessarily) members of the management board, may entrust the management of the company’s affairs to others upon retirement. They then face the question of what to do with their business shares. In the case of a family company, the founder must decide whether to gift or sell the shares to younger family members or other individuals. Sometimes, the issue of intergenerational succession of management and membership functions in the company arises unexpectedly through inheritance of a business share. The goal of this article is to analyze the challenges of legally structuring the transfer of a business share in a limited liability company through a gift contract to selected family members. It will address controversies that may arise and answer common questions in corporate and judicial practice regarding inheriting a business share. Additionally, the paper will suggest ways to legally prevent the identified challenges.
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Copyright (c) 2025 Edita Čulinović-Herc, Mihaela Braut Filipović, Sara Madžarov Matijević
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