language
In the process of business operations and family wealth succession, dispersed shareholding is often a key risk leading to disputes over control. Without early planning, family businesses may fall into turmoil due to share transfers, inheritance disputes, or market competition, affecting their long-term stability. Therefore, family trusts have become an essential tool for many business owners to protect core business assets and ensure stable control.
In the past, a well-known oil manufacturer in Taiwan, the Hsu family, suffered a prolonged battle over corporate control due to a lack of proper equity planning. Although family members collectively held over 40% of the shares, the lack of centralized management allowed external investors to gradually acquire a majority stake through aggressive market purchases. Eventually, at an extraordinary shareholders' meeting, the external investors overturned the board, secured a majority of seats, and took control, causing the Hsu family to lose its leadership position.
If business owners establish a family trust for equity planning in advance, they can effectively avoid similar risks of corporate control disputes. A family trust provides the following benefits:
✔ Centralized Shareholding: Through trust arrangements, corporate shares are managed by the trust institution, preventing individual family members from selling their shares due to personal reasons, which could lead to share dilution or external acquisition.
✔ Ensuring Stable Control: The trust structure allows for pre-planned business succession, ensuring that control is smoothly transferred to designated successors without being affected by internal or external competition.
✔ Reducing Family Disputes: The rights and benefits of family shareholders are clearly defined through the trust, avoiding internal conflicts caused by inheritance issues and safeguarding business continuity.
✔ Minimizing Wealth Loss: The trust framework helps mitigate financial losses caused by inheritance taxes, inheritance disputes, or financial conflicts, ensuring effective family wealth preservation.
The long-term development of a business depends not only on market competitiveness but also on a stable equity structure and wealth succession mechanism. With careful planning through family trusts, business owners can ensure the longevity of their enterprises, preserving their family’s hard work and values for future generations.
#OffshoreTrust #WealthPlanning #FamilyTrust #FamilyOffice #DreamerGroup
The information provided on this website is for general information purposes only and does not constitute an offer, and the Website and all information provided to you via the website are provided “as is” and “as available”, the content described herein is subject to change without notice from Dreamer Group Limited and/or any of its members, affiliated entities (Dreamer Group Limited and all its members and affiliated entities collectively referred to as the “Dreamer Group” herein after). We will strive to ensure the integrity and accuracy of the website's functionality and content, while, to the maximum extent permitted by applicable law, we disclaim all express, implied, and statutory warranties with respect to the same, including without limitation any implied warranties of merchantability, satisfactory quality, fitness for a particular purpose, accuracy, completeness, non-infringement, non-interference, error-free service, and uninterrupted service.
By making available the websites, Dreamer Group is not making an offer of any financial, tax, accounting, legal or other professional services or goods, and none of the information presented on the websites should be construed as finance, tax, accounting, legal or any other professional advice or service. You should always seek the advice of a suitably qualified professional before taking or refraining from taking any action. Dreamer Group will not be liable in any way to any person for any action taken or omitted to be taken as a result of the use of any content posted by us, which results in, causes or gives rise to any loss.
The laws of some jurisdictions may impose restrictions on the distribution of materials described on this Site. This Site is not directed to persons in jurisdictions where such restrictions apply. If you belong to such areas or you are in such areas, please exit this website immediately and you will be responsible for any losses, controversies, disputes and other negative consequences arising from your continued browsing.
All information, text and images on this website are copyrighted or registered by DREAMER GROUP.
We urge all persons contacting Dreamer Group to check the website and service number carefully and to remain vigilant to avoid being deceived or misled by unscrupulous persons.
This disclaimer is written in Chinese and the English version is provided for information purposes only.
