Family-owned businesses are the backbone of the Turkish economy, accounting for more than 80% of all active enterprises. These companies—ranging from small manufacturing firms to large holding structures—are often built on legacy, loyalty, and long-standing personal relationships. But as these businesses mature and move into second or third-generation leadership, they face a unique set of legal and structural challenges. Succession disputes, unequal shareholding, inactive family members, and lack of professional governance can cause internal conflict, revenue loss, and even total collapse if not addressed properly. This is why restructuring family businesses in Turkey has become a crucial area of legal advisory work for firms focused on long-term sustainability and intergenerational success.
At ER&GUN&ER Law Firm, we advise family shareholders, boards, and founding members on strategic restructuring, governance reform, and shareholder exit models. As a Turkish Law Firm with deep experience in inheritance disputes, shareholder conflicts, and capital restructuring, we guide our clients through sensitive transitions with legal clarity and emotional intelligence. Our English speaking Turkish lawyers provide bilingual counsel for families with foreign shareholders, multinational assets, or overseas succession planning needs. Whether you're preparing for leadership transition or resolving a power struggle, our team builds structures that protect family legacy and corporate value simultaneously.
Common Legal Issues in Turkish Family Companies
As family-owned businesses grow, they often struggle to separate emotional dynamics from corporate logic. Shareholding is frequently distributed based on family lineage rather than role or performance, and decision-making may rest with a single founder long after professional governance should have taken over. This leads to predictable legal challenges:
- Disputes between active and passive shareholders
- Blocked decision-making due to equal vote shares
- Inheritance claims and legal heirs with no business involvement
- Lack of written shareholder agreements or exit strategies
- Tax inefficiencies and hidden liabilities
- Stagnant management due to unclear roles or titles
Our Turkish Law Firm helps family-owned companies identify these pain points and restructure their legal and operational models before disputes erupt. We prepare custom governance documents, update commercial registry records, and build shareholder alignment through documented processes. With our support, families move from informal to institutional—without losing identity or control.
Share Transfer, Exit Strategies, and Succession Planning
One of the most delicate challenges in family business restructuring is planning for exits—voluntary or otherwise. When a family member wishes to sell their shares, retire, or relocate abroad, the company often has no pre-agreed mechanism to calculate fair value, determine buyer priority, or fund the transaction. Likewise, succession planning is frequently left to verbal assumptions, with no legal structure supporting who will take over after the founder passes away or becomes incapacitated. These oversights lead to emotional tensions and legal battles that could have been avoided with proactive planning.
Our English speaking Turkish lawyers advise families on implementing shareholder exit strategies in Turkish family businesses. We draft legally binding shareholder agreements that define share valuation formulas, drag-along and tag-along rights, transfer restrictions, and exit triggers. We also assist with inheritance structuring—using wills, pre-distribution agreements, and corporate reclassification to ensure that the next generation takes over in an orderly and tax-efficient manner. As a strategic Turkish Law Firm, we help transform family emotion into legal precision.
Dispute Resolution and Governance Reform
When disagreements arise—between siblings, cousins, or across generations—they often stem from a lack of institutional governance. Most family businesses in Turkey still operate without formal boards, independent advisors, or performance-based management protocols. This leads to personality-based conflict rather than role-based clarity. To fix this, companies must move beyond family titles and install professional governance frameworks.
We help clients draft or revise their Articles of Association, set voting thresholds, define board composition, and establish decision-making procedures. For deeply divided families, we also mediate disputes, prepare buyout structures, and—if all else fails—initiate lawsuits for share repurchase or company division. Our goal is not just to resolve conflict but to prevent its reemergence through structural clarity and legal enforceability.
Internal Legal Resources for Family-Owned Business Law
- Legal Risk for Family Board Members
- Reorganizing Family Firms as Corporate Entities
- Inheritance and Succession in Turkish Law
- Tax Planning in Family-Owned Business Transfers
- Resolving Shareholder Deadlock in Family Companies
Frequently Asked Questions (FAQs)
- How can I transfer shares in a Turkish family company? Through a notarized share transfer agreement, registered with the Trade Registry and reflected in the company books.
- Do I need a shareholder agreement? Absolutely. It is the legal backbone of every family business and protects against future disputes.
- Can I exclude an heir from the company? Only under strict legal conditions. We design preemptive structures to control inheritance-based entry.
- What happens if siblings disagree on the company’s direction? We help mediate or structure voting rights, board composition, or exit routes to resolve deadlock.
- How is fair share value calculated? Through agreed valuation formulas, or third-party auditor reports, especially when parties disagree on numbers.
- Can I restructure to protect family assets? Yes. We use holding structures, shareholder classes, and voting schemes to separate control and income.
- What taxes apply to share transfers? Share transfers between family members may be exempt, but capital gains tax and stamp tax may still apply in some cases.
- Can I give shares to my children before I die? Yes. We assist with inter vivos transfers, inheritance waivers, and trust-like corporate vehicles.
- Is it possible to split the company among heirs? Yes, but it requires legal planning. We structure divisions and partial exits without disrupting core operations.
- How can a Turkish Law Firm help? We guide you through family agreements, governance documents, restructuring strategies, and long-term succession models tailored to Turkish law.
Preserve Legacy, Minimize Conflict, and Secure the Future
Restructuring a family-owned business is never just a legal task—it’s a process of balancing tradition with transition. In Turkey, where family companies carry deep emotional value and intergenerational ties, the stakes are often personal as well as financial. But waiting too long to formalize structures, plan exits, or establish succession rules creates legal risks that grow over time. Shareholder disputes, inheritance litigation, and blocked decision-making are not inevitable—they are preventable.
At ER&GUN&ER Law Firm, our English speaking Turkish lawyers help family businesses evolve with strategy and legal clarity. Whether you're restructuring for the next generation, resolving a conflict between founders and heirs, or preparing a liquidity event, we design solutions grounded in Turkish law and family insight. As a trusted Turkish Law Firm with a track record in family business restructuring in Turkey, we don't just write documents—we build peace, continuity, and governance that lasts.