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Cross-Border Cases
Practice review: inheritance and succession of cross-border equity
A founder's cross-border equity, without succession planning, can trigger complex disputes on an unexpected event.
A typical scenario: a founder holds equity through a cross-border structure without succession planning, and on an unexpected event, inheritance raises complex issues across procedure, tax, and governance in several jurisdictions.
Cross-border equity inheritance involves different succession laws, tax, and charter restrictions, and lack of planning drags on company stability.
The lesson: design succession and contingency arrangements for key shareholders (wills, trusts, charter clauses) and ensure they are coordinated and enforceable across jurisdictions.