I sit in the corridor outside the courtroom, throat dry, the mounting legal bill a constant weight in my mind. The walls around me feel as constricting as the situation I now find myself in. The dispute with my brothers and sister—once my closest allies—has spiralled out of control. Could I have handled things differently? The answer is a question that gnaws at me. The adviser’s words from nine months ago echoes in my thoughts, a refrain of what might have been.
“Hold regular board meetings,” he had urged. “Keep the lines of communication open.” I dismissed it then, convinced that regular meetings would be a time drain. We were family, after all—why did we need formalities? I thought our bond would suffice, that we didn’t need to discuss every decision openly. I was wrong.
The Westshield Case: A Family Business in Turmoil
This case highlighted the challenges and heartbreak of family business disputes. It was a classic family business started by the parents and grown into a successful enterprise. Over time, shareholdings were passed to the four children—three brothers and one sister—all of whom contributed to the business at various stages.
One sibling emerged as the dominant figure and eventually became managing director with a larger shareholding, formalising his role as leader. However, tough decisions had to be made when the company faced financial difficulties. A third-party investor came on board, and the parents exited the business. That’s when tensions among the siblings escalated; the dominant sibling’s decisions, seen as necessary for the business’s survival, were resented by the others with accusations of exclusion and unfair treatment.
Later, two sibling co-directors were dismissed, citing their behaviour as detrimental to the company. Sibling rivalry, long-buried grievances, and perceived slights turned a business dispute into an all-out familial war. The case went to court, where the siblings argued they had been unfairly excluded and sought to have the dominant sibling buy out their shares.
The Judgment
The court ruled that while the dominant sibling had acted unfairly to some extent, much of the siblings’ claims were exaggerated. Specifically, the judge found that the dismissal of the co-director siblings was not unfair due to their own behaviour. On the other hand, the siblings had acquiesced to many of the decisions at the time, weakening their claims of unfair treatment.
Ultimately, the judge declined to force a buyout of the siblings’ shares, leaving the family locked together in an unresolved legal and emotional quagmire. Years of litigation and significant legal expenses resulted in no clear resolution. The Westshield case underscores the perils of letting familial disputes fester and the high risks of litigation in family businesses.
How Did We Get Here?
Reflecting on my own situation, the parallels are clear. Like in Westshield, our family business started with high hopes and a strong sense of unity. I stepped up as leader because I believed I was best positioned to make the tough decisions. But in my focus on saving the business, I lost sight of the importance of collaboration and communication.
Looking back, I see how my siblings felt excluded, how their perspectives were dismissed. Regular board meetings could have provided a forum to address concerns and find common ground before resentment took root. Instead, decisions I thought were for the good of the business came across as unilateral and dismissive.
What I Would Do Differently
If I could turn back the clock, I would embrace a more collaborative approach. Regular board meetings, as suggested by the adviser, would have been an invaluable tool—not just for governance but for maintaining trust. Clear communication, shared decision-making, and structured conflict resolution might have prevented the misunderstandings that led us here. Leadership in a family business isn’t just about making decisions; it’s about keeping the family united.
A Lesson Learned
The Westshield case and my own experience highlight a critical truth: family businesses thrive on relationships, but those relationships require nurturing. Disputes don’t start in boardrooms; they start in the silence of unmet expectations and unspoken grievances.
Take the Next Steps with Wills, Tax & Trusts Ltd
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Ray Best
Like his academic development, writing came late to Ray. He has written several published works, “Inheritance Tax Planning – My Way” and “Shareholder Protection & Partnership Protection” and has had four feature articles published in Tax Adviser magazine, but the publication he is most noted for is the joint collaboration with Tony Granger “Inheritance Tax Simplified”.
