50/50 Family Business Ownership Is Not a Succession Plan
Equal ownership can appear perfectly fair.
Two children. Two branches of the family. Half each.
Unfortunately, equal ownership and effective decision-making are not the same thing.
In APL Holdco Ltd v Apple Properties Ltd [2026] EWHC 2245 (Ch), two brothers were the ultimate beneficial owners of equal shares in a company holding 11 London rental properties worth more than £4 million.
Their relationship had completely broken down. The company’s bank account had been frozen, rental income had been diverted and the business had become functionally deadlocked.
One side asked the High Court to wind up the company.
The court refused.
The judge concluded that the individual behind the application had been the sole cause of the breakdown and lacked the “clean hands” required to obtain equitable relief. The judgment records an extraordinary history of disputed ownership, withheld information, diverted company funds and damaging litigation.
This was a corporate dispute rather than an inheritance case, but the succession-planning lesson is difficult to miss.
Why 50/50 Family Business Ownership Can Become a Problem
Many family businesses and property companies are left equally between children without sufficient thought being given to what happens next.
What if they disagree?
What if one sibling works in the business and the other simply expects an income?
What if one wants to sell while the other wants to retain the assets?
What happens if one of them dies, loses capacity, divorces or encounters financial difficulty?
A Will can decide who receives the shares.
It cannot, by itself, determine how those people will successfully run the business together.
Fair Does Not Always Mean Workable
A credible family business succession plan may also require:
a properly drafted shareholders’ agreement;
clear voting and decision-making rules;
a mechanism for resolving deadlock;
arrangements governing the sale or valuation of shares;
replacement directors and attorneys;
appropriate life insurance or funding arrangements; and
coordinated Wills and trusts governing where the shares ultimately pass.
Without those provisions, yesterday’s successful family business can become tomorrow’s family dispute.
Business Succession Is About More Than Who Inherits the Shares
Leaving 50% of a business to each child may be equal, but equality is not a substitute for governance.
Business succession should address ownership, control and continuity.
It must establish who receives the value, who makes the decisions and what happens when those people cannot agree.
This is particularly important where a succession plan involves Wills, trusts, company shares and arrangements for what happens if an owner dies or loses capacity.
A Property and Financial Affairs Lasting Power of Attorney may also form part of the wider planning where appropriate, helping to ensure that suitable arrangements are in place if a business owner can no longer make certain financial decisions themselves.
The iTrust View
Leaving 50% of a business to each child may be equal, but equality is not a substitute for governance.
Business succession should address ownership, control and continuity. It must establish who receives the value, who makes the decisions and what happens when those people cannot agree.
The purpose of planning is not simply to distribute the shares.
It is to prevent the business — and the family — from becoming trapped by them.
Frequently Asked Questions
Is leaving a family business 50/50 between two children a succession plan?
Not by itself. A Will may determine who inherits the shares, but an effective succession plan should also consider how the business will be controlled, how decisions will be made and what happens if the owners disagree.
What happens if two 50/50 shareholders cannot agree?
A 50/50 ownership structure can result in deadlock where neither shareholder has sufficient control to make a decision. The outcome will depend on the company’s governing documents, any shareholders’ agreement and the circumstances involved.
Can a Will decide who controls a family business?
A Will can determine who receives a deceased owner’s shares, but it does not necessarily determine how multiple shareholders will successfully operate the business together.
What should a family business succession plan include?
Depending on the circumstances, planning may include Wills, trusts, shareholders’ agreements, voting arrangements, deadlock provisions, share valuation mechanisms, insurance or funding arrangements and plans for death or loss of capacity.
Why does business succession planning matter?
Business succession planning helps establish who will own the business, who will control it and what should happen when circumstances change. The aim is not simply to transfer shares, but to protect the continuity of the business and reduce the risk of future family disputes.
James Berkeley
Senior Counsel
iTrust121 Ltd