This isn't about horror stories, of which we know many. It is solely about the question of how you prepare your company for future developments and the uncertainties of life. Succession is not just the planned end of your entrepreneurial activity, but also the abrupt—and hopefully temporary—absence of an entrepreneur. Your responsibility to your company's ecosystem requires preparation for the worst-case scenario, even if you hope it never happens.
Playing it safe: Ensuring operational capability
The famous "emergency folder" is, of course, far too limited. Your company must remain capable of acting if you are unavailable. In the digital age, the availability of all important documents can be well organized, and representation rules should be an integral part of your organization. It is often overlooked at which levels a managing partner makes decisions. Operational capability must be ensured at the management level just as it is at the shareholder level—and this must be aligned with your company's articles of association.
Defining roles creates clarity
As an entrepreneur, you have at least two roles: you are management, and you are an owner or shareholder. If there is another member of the management team, the company remains capable of acting, provided there is appropriate authorization for representation.
The shareholders' meeting, however, may not be capable of acting if you are unavailable. Alternatively, decisions might be made where you, as a shareholder, have no vote due to your absence. The consequences can be manifold. For example, if you have defined transactions that require approval, these approvals might not be granted, leaving management with limited operational capacity.
Business power of attorney – let others act when you cannot!
You can shape the potential impact on the shareholders' meeting to a certain extent. With a business power of attorney, you can be represented. This ensures that your company's shareholders' meeting remains capable of acting and that your interests are protected. Making these arrangements in advance helps your family, as you have established a framework for action. A business power of attorney and the regulation of operational capability in an emergency are partly legal matters. The decisive questions, however, are entrepreneurial and organizational in nature, from which the legal implementation follows.
Preparation and implementation
THE MAK'ED TEAM is familiar with the issues involved in setting up emergency plans. Even though the objectives of these concepts are always the same, every company and every corporate structure is different. Therefore, a structured approach is recommended to establish emergency plans that take into account the important interests of you, your company, and your family. Experience shows that this can be a good foundation for further development into a succession plan.
Find out more about succession and emergencies here.
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