# FAMILY BUSINESS SUCCESSION AGREEMENT
Date: 3 June 2029
Parties: Moorland Joinery Limited, Peter Alan Hughes and Charlotte Hughes
## 1. Parties and purpose
Moorland Joinery Limited (Company No. 04481209) operates from 2 Foundry Lane, Sheffield S3 8AB. Founder Peter Alan Hughes owns 70% of its ordinary shares and is Managing Director; his daughter Charlotte Hughes owns 30% and is Operations Director. They record a staged succession intended to protect employees, customers and the company's independent trading.
## 2. Scope, price and subject
On 1 January 2030 Peter will step back from daily management and become non-executive chair for 12 months. Charlotte will become Managing Director subject to board appointment, Companies House filings and the articles. Peter will transfer 10% of his shares to Charlotte for £85,000 based on an independent accountant's 31 March 2029 valuation, with the balance of his shares to be offered in equal tranches in 2031 and 2032.
## 3. Operating duties
Charlotte will fund the first transfer from a £50,000 bank loan and £35,000 vendor loan repayable over 36 months at 4% fixed interest. The company is not a party to the personal purchase price, and no transfer occurs until the stock transfer form, share certificate, board approval and any pre-emption waiver required by the articles are complete.
## 4. Compliance, records and controls
Peter will provide a six-month handover covering key customers, supplier terms, banking controls, machinery warranties and health-and-safety records. Charlotte will preserve existing employment terms, consult employees on material changes, maintain pension and holiday rights, and use reasonable efforts to retain skilled staff. Family relationship does not override directors' Companies Act 2006 duties or the interests of the company.
## 5. Term, ending and remedies
The parties will meet quarterly as a family council, but only the board may bind the company. A deadlock over a proposed sale or major borrowing goes to an independent mediator, then to a jointly appointed valuation accountant; a shareholder may not transfer to an outside buyer without first offering the shares under the articles. A serious breach allows suspension of the next tranche, not automatic forfeiture of vested shares.
## 6. Liability and reservations
Each party keeps business information confidential, declares conflicts and obtains tax advice on capital gains, inheritance tax, employment and vendor-loan treatment. The valuation is a worked commercial basis, not an HMRC clearance or guarantee of tax outcome. Peter's death or incapacity triggers the existing will, articles and shareholder agreement rather than an informal family promise.
## 7. Governing law and signatures
England and Wales law governs. Moorland's board must approve any corporate act and update statutory registers; Peter and Charlotte sign on 3 June 2029 after independent legal and tax advice was recommended. This agreement records their intentions and binding transfer mechanics but cannot amend the articles or compel a director to breach a statutory duty.