【Corporate Equity Succession Trust】

Mr. Huang’s corporate equity constitutes the core of his wealth. As he ages, his children have varying degrees of involvement in the business, but their individual capabilities and development paths differ. He worries that directly allocating equity to his children could lead to fragmented control, operational instability, or even the erosion of family wealth due to:

• Divergent business philosophies among the children,
• Changes in personal marital status, or
• External economic pressures.

To address these concerns, Mr. Huang transferred his corporate equity into a family trust. The trust institution implemented a multi-tiered structure that separates ownership rights and control rights of the equity.

• Top-Tier Structure: The trust is designated as the nominal holder of the corporate equity, ensuring its integrity and independence.
• Bottom-Tier Structure: The trust specifies differentiated benefit shares and conditions tailored to the unique circumstances of each child.

The trust agreement meticulously outlines the rules and processes for family members’ participation in corporate governance. The trust institution also established comprehensive risk mitigation measures for the corporate equity succession trust:

• Legal Safeguards: The trust agreement is designed with stringent contractual provisions to prevent risks such as equity division or freezing due to family disputes, marital changes, or debt conflicts.
• Operational Stability: The institution closely monitors industry trends and market dynamics to devise proactive strategies. For example, in the face of intensified industry competition or shifting market demands, the trust leverages its resource integration capabilities to identify strategic partners, adopt advanced technologies, or expand into new markets. These measures enhance the business’s resilience.

By establishing the family trust, Mr. Huang achieved a smooth transition of corporate equity and family wealth.

The corporate equity succession trust enabled him to construct a scientific and robust mechanism for business succession, effectively avoiding potential disputes over control or operational crises caused by internal family factors or external environmental changes. It ensures a stable transition and sustainable development of the business under the next generation's stewardship, maintaining it as the core source of family wealth—providing a solid foundation for its inheritance.

The trust structure’s flexible and rational distribution of equity benefits and control rights actively engages family members in business management, encouraging collaboration and creativity. Each child finds a suitable role and development path within the company, fostering unity, cooperation, and talent development within the family. This contributes to both the sustainable growth of the family business and the individual achievements of family members.

Furthermore, the trust institution’s professional risk mitigation and value-added strategies provide forward-looking solutions to various potential risks. Through diversified investments, it achieves stable growth of family wealth, enhancing the business’s overall competitiveness and resilience in the market. This solidifies the foundation for the long-term inheritance of family wealth.