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What rights do non-stock holder family members have in the family business?

Answer:

Non-stockholder family members can consider themselves "stakeholders", insofar as they stand to gain or lose, depending on the success or failure of the business. If their parents' estate, for instance, is affected by the business, then they may be stakeholders, even if they don't hold stock. Although many experts recommend concentrating stock ownership in those who choose to manage the company, sometimes other family members do need up to date, correct information about the company. In my experience, providing the right information to other family members - who may imagine things to be either better or worse than they actually are - usually prevents manipulation behind the scenes and other conflicts. And besides, they may raise a child who could someday be an asset to the business.

 

 
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