Search results

The chapter deals with the interface between the law of succession and corporate law and explains the completely different objects of these two fields of law. Succession law tries to shift and contribute assets to the successors, whereas corporate law focuses on the well-being of the company. However, in a family business, it is necessary to find legal, social, and psychological techniques to combine these two areas and to establish strong and binding relations. This is the function of shareholder agreements and family constitutions.

Family constitutions are relatively new to the law of family companies, although there might have been forerunners in the history of entrepreneur families. The practical importance and the proliferation of family constitutions in German family companies are increasing, along with the discussion of family constitutions in legal literature. This new instrument of family governance is not law driven but business driven, it has been designed by business advisors. Its analysis and classification are still at the very beginning in academic research and practice. Even though family constitutions are generally deemed to be without any legal effect and not legally binding, from a legal point of view, this assumption is at least highly questionable.

This article aims to review business and academic literature on the topic of business succession planning (BSP). The purpose is to allow the vast quantity of evidence and opinion to be contextualised, and enable a better understanding of the key themes within BSP, particularly with respect to small, family‐owned businesses.

An extensive literature search of business magazines, journal databases, textbooks, and relevant reports and citations was carried out. A categorisation of the evidence, involving over 400 articles, allowed informed discussions on the key themes surrounding BSP.

Key findings include family succession, legal, financial, and fiscal components, barriers against implementation, and methods for managing the process. A detailed summary of these and other topics is given, which together constitute the critical themes which should be borne in mind by businesses facing BSP.

The main weakness of this paper is the lack of theoretical development. However, the findings prompt key areas for future research, and help to contextualise the topic for any potential new developments in succession planning.

Despite the need for further scientific and validated studies, businesses are urged to devote sufficient resources and attention towards succession to promote long‐term survival and prosperity.

This paper allows researchers and business practitioners to obtain a wholesome reflection on the key themes within BSP, which are often exacerbated by the sheer volume of diverse opinion. The value of this paper is that it amalgamates the available evidence and offers a detailed, informed insight into the current state of research and practice in business succession.

This paper sets out to examine the reasons why 599 entrepreneurs in Kenya, Ghana and Nigeria started their small businesses. It aims to compares ten motivations across three countries and by gender.

Ten Likert‐style questions were used to determine start‐up motivations. The mean scores were calculated and compared to test for significant differences. A factor analysis was conducted to see whether the ten items could be synthesized into distinct factors. Then, the factors were compared across countries and by gender.

The strongest motivator across countries was the opportunity to increase income. A factor analysis found three motivation factors: a family factor, an external validation factor, and a self‐betterment factor. The three countries showed significant differences with Ghanaian entrepreneurs rating the family factor as more important. The item analysis showed that female entrepreneurs were less motivated to create a business as a legacy or for external validation.

The list of motivations here is non‐exhaustive. The addition of other motivation items could change the results. Results should not be generalized to other countries or other regions of the countries surveyed.

Since motivations differ across countries and gender, countries can benefit from developing country‐ and gender‐specific programs to encourage business creation. For instance, Nigeria and Kenya should develop stronger succession laws so that businesses can be inherited by family members. Ghana and Nigeria might stimulate more enterprise development by providing public recognition for entrepreneurial behavior.

This is the first cross‐country study of the motivations of entrepreneurs in sub‐Saharan Africa.

A family takaful certificate is subscribed by a takaful participant for the purpose of preparing financial support for his dependants after his death. The takaful benefits could then be made payable to a nominee named as the beneficiary under conditional hibah (gift). In this respect, the participant is free to decide to whom the benefits are to be given since the law is silent as to the criteria of the beneficiary. This situation gives rise to the issue on whether such a practice fulfils the objectives of Sharīʿah, especially when the nominated beneficiary is not the sole dependant of the deceased participant. Therefore, this research aims to evaluate the status of family takaful benefits, analyse the rules of conditional hibah from the Sharīʿah perspective and propose solutions whenever necessary. The research adopts doctrinal analysis by examining existing primary and secondary materials including statutory provisions and other legal and non-legal literatures. The study predicates that the application of conditional hibah to the whole benefits does not reflect the objectives of Sharīʿah if determination on the status of the benefits is solely based on the nomination made by the participant. It is observed that takaful benefits payable from the Participant’s Account should be considered as the deceased’s estate and must be distributed according to fara’id or Islamic law of inheritance. Conversely, the sum covered payable from the Participant’s Special Account may be paid to the deceased’s dependants whose criteria are determined by the Sharīʿah Advisory Council as the highest authority in Islamic financial matters.

The literature on cohabitation intimates a clear line between marriage and cohabitation where the latter lacks a formal or legal backing. This understanding overlooks contextual issues which complicate definitions of cohabitation. With evidence from historical and contemporary literature on cohabitation among the Asante of Ghana, this chapter argues that traditional social practices coupled with the plurality of legal frameworks governing marriage in Ghana, leads to subjective constructions and interpretations of cohabiting unions. Consequently, there are situations where one form of partnership would qualify as marriage, whilst the same would be considered a cohabiting union in other circumstances. Again, the sense in which cohabitation functions as a prelude, an alternative or equivalent to marriage among the Asante differs significantly from what pertains in other societies. The chapter, therefore, calls into question the oversimplified meanings of cohabitation often based on the assumption of a dualistic relationship between marriage and cohabitation. The chapter concludes that the definition of cohabitation among the Asante and some sections of the Ghanaian public is fluid and not as clearly defined as it is in other parts of the world, especially the Global North. Given this reality, rather than generalized interpretations of cohabitation, researchers need to consider the contextual differences and understandings of cohabitation in their studies.