GREECE Trends and Developments Contributed by: Theodore Rakintzis, Panagiotis Pothos, Angeliki Miliakou and Petros Roumpis, Kyriakides Georgopoulos Law Firm
• Single-family focus: services are provided exclu- sively to members of the family group. • Incentivised formalisation: the framework encour- ages families to replace informal asset manage- ment arrangements with a structured, professional governance vehicle. Beyond any tax considerations, the practical govern- ance benefits are significant, including: • centralised management of family assets and expenditures; • continuity of decision-making across generations; • preservation of institutional knowledge despite changes in leadership; • professional reporting and accountability; and • reduced risk of misunderstandings or disputes among family members. Operating through a dedicated entity allows the family to implement consistent policies and maintain profes- sional management even when key individuals retire or pass away. Family business succession – governance tools to prevent disputes For families owning operating businesses, succes- sion risk arises primarily from fragmented ownership and unclear control after inheritance, especially where multiple heirs acquire shares. Without prior planning, co-ownership may lead to deadlock in decision-mak- ing, conflicts over dividends versus reinvestment, dis- putes over management roles, uncertainty regarding strategic direction, or pressure for premature sale or exit. To mitigate these risks, succession planning increas- ingly focuses on governance arrangements imple- mented during the founder’s lifetime. Common legal and organisational tools include the following. • Family charter (family constitution): sets out shared values, vision and long-term objectives, defines the roles of family members in ownership and manage- ment, establishes participation criteria and behav- ioural expectations, and provides guidelines for dividend policy or reinvestment.
• Shareholders’ agreements tailored for succession, covering: (a) voting arrangements and allocation of control; (b) board composition and appointment rights; (c) pre-emption rights on share transfers; (d) restrictions on transfers to third parties; (e) special majority requirements for key deci- sions; (f) deadlock resolution mechanisms (eg, arbitra- tion, buy-sell triggers); and (g) liquidity or buyout pathways for heirs wishing to exit. • Staged transition and successor preparation, cov- ering: (a) gradual transfer of managerial responsibilities; (b) mentoring and training of next-generation lead- ers; and (c) avoidance of abrupt, unplanned transfer of control. • Buy-sell and liquidity mechanisms, such as: (a) formula-based pricing clauses; (b) insurance-funded buyouts; (c) options for the company or remaining share- holders to purchase shares; and (d) protection of the company’s financial stability while compensating departing heirs. These instruments translate the founder’s intentions into practical, enforceable rules governing the com- pany after death. Clarifying rights, responsibilities and exit options in advance significantly reduces the likeli- hood of intra-family disputes and operational paralysis during a generational transition. Inheritance law reform Greece is in the middle of a transformative cycle for succession planning, combining procedural modern- isation already in force with a comprehensive draft reform of inheritance law that the Justice Ministry has publicly presented and stated is planned to become law in the first quarter of 2026, subject to public con- sultation and final legislative text. Forced heirship redesigned: from a proprietary right to a monetary claim A central announced change is the transformation of forced heirship from a proprietary entitlement into an obligational right, taking the form of a monetary
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