Legal Question in Business Law in New York
I am the gm of a small mfging corp,the owner would like for me to run it but has 40yo son who is thing he will own someday- is there a contract we can put in place to provide succession who her giving up ownership
2 Answers from Attorneys
Of course this can be placed in writing. However, be careful and get an attorney because there are a number of caveats and warnings that stick out in my mind. First, for purposes of this Answer, we will call the current owner The Owner here because I am skipping technical names here such as "Testator", "Decedent", "Grantor', 'Heir", etc. This is because the same person writing a will, or not writing a will, setting up Trusts, transferring to bypass Probate, etc. fluctuate depending on a number of factors. Additionally, at this point, we are discussing what should happen while the Owner is alive and in the proper capacity to execute such documents that would protect your rights. However, we also have to think about what could happen should the owner become incapacitated and/or pass away. And what about what happens when the son takes over ownership? What if he decides to sell or try some other legal maneuver to oust you?
In general, and I counsel clients on this all the time, no matter WHAT you think of who you are dealing with once you become incapacitated, pass away, or just transfer over your rights to something, such as a house, business, etc., you just NEVER KNOW if your wishes are being carried out. Even those receiving such assets may have the best intentions but circumstances change, they themselves could become incapacitated, have addictions, encounter financial duress, divorce, the person's significant other(s) can say things like "I don't care what your Dad wanted we need the money now" or "why are you paying him/her to manage the business-I/you/our kids could do it"..., and a plethora of other circumstances I have seen over the years.
So, for example, in one scenario, without proper protections for you, the Agreement between you and the Owner could possibly be void if and when the business is sold, or there is a falling-out between you and the son, or everything is fine between you and the son and the business is thriving but the son passes away...and a plethora of other circumstances properly drafted documents by a good attorney can protect you against. I don't know what your circumstances are but perhaps a consultation with an attorney and THEN, upon that attorney's advice, an honest discussion with the owner would be of enormous help.
Yes, of course.
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