Setting the boundary between family and company in written rules, and planning generational transition starting today.
The vast majority of companies in Turkey are family businesses, and very few of them reach a third generation. The reason is usually not commercial failure but indecision within the family.
A family constitution is a document that sets out in advance who can work in the company, how shares are kept from leaving the family, what rule governs profit distribution, and how leadership will be handed down. It's written before problems arise, while everyone is calm.
SBP Legal treats the family constitution not merely as a text but as part of an integrated system that also includes the articles of association, the shareholders' agreement, the will, and the company structure.
What we do in this area
Family constitution drafting
Putting family values, employment rules, the family council and decision-making mechanisms into writing.
Legally binding foundation
Making the rules in the constitution enforceable through the articles of association, the shareholders' agreement and voting agreements.
Generational transition plan
Leadership-handover timeline, stages of delegating authority, and a program preparing the next generation for management.
Share transfer and exit rules
Right of first refusal, restrictions on transfers outside the family, valuation methodology, and rules for divorce and death scenarios.
Estate and wealth planning
Balancing reserved shares, wills, inheritance agreements, and protecting wealth through a holding structure.
Family dispute management
Deadlock-resolution mechanisms, family mediation, and confidentiality-based negotiation.
Does this page speak to your situation?
If any of the following applies to you, now is the time to talk:
- The second generation is preparing to join the company.
- Authority and profit-sharing among siblings has become a point of contention.
- You want the company's continuity to no longer depend on specific individuals.
- You want to secure where shares go in the event of divorce or death.
Frequently asked questions
Is a family constitution legally binding?
A family constitution signed on its own is a moral and institutional understanding with limited enforceability. Bindingness comes from transferring its rules into the articles of association, the shareholders' agreement and, where needed, voting agreements. The right design is to run both layers together.
When should a family constitution be written?
Before a crisis hits. Documents drafted while a dispute is already active turn into a negotiation and are usually never finished. The ideal timing is before the second generation joins the company.
How do I stop shares from leaving the family?
In a joint stock company you can subject the transfer of registered shares to company approval through transfer-restriction (Vinkulierung) provisions in the articles of association. On top of that, the shareholders' agreement should provide a right of first refusal, tag-along rights and a pre-agreed valuation formula. Death and divorce scenarios need to be addressed separately.
This page was last updated on 20.07.2026. Content is for general informational purposes and does not substitute for legal advice.