What is a Family Business and Common Structures in Antalya

Family companies are businesses whose capital is mostly owned by a family and whose management is carried out by family members. As in Türkiye in general, a significant portion of trade in Antalya is carried out by family companies.

In Antalya, family companies mostly appear in the following structures:

  • Small and Medium-Sized Enterprises: They operate in the tourism, agriculture, food and construction sectors.

  • Conglomerate Family Structures: Management problems become more complex in companies that grow over generations and have multiple partners.

  • Local Initiatives: Family businesses, which are especially common in regions such as Alanya, Manavgat and Serik, generally include hotel, restaurant and real estate investments that are passed down from generation to generation.

Management Structure and Institutionalization Problem in Family Businesses

Although the direct involvement of family members in the management of the company provides advantages in the early years of the company, it creates serious obstacles to institutionalization over time. In Antalya, this situation becomes more visible, especially with the second generation.

  • Distribution of Authority is Not Clear: The habit of founding individuals to carry out every process alone creates a crisis in the following generations.

  • Lack of Trust in Professional Managers: Appointment of managers from outside the family is discouraged by fear of loss of control.

  • Decision-making processes become blocked: When company decisions depend on family approvals, momentum is lost.

Common Disputes Among Stakeholders

1. Dividend Disputes

The issue of how to divide profits becomes a matter of conflict, especially when the need for investment and growth conflicts with personal income expectations.

2. Management Authority and Decision Making

Board members are usually chosen from family members, but decisions based on majority vote may exclude some partners, which is objected to by minority shareholders.

3. Differences of Opinion Between Generations

While the new generation offers innovative ideas such as investment, digitalization or external partnerships, the founding generation often resists this vision.

Legal Solutions for Disputes Between Partners

  1. Objection to General Assembly Decisions:
    According to the Turkish Commercial Code, minority shareholders may object to the general assembly decisions and file a lawsuit for annulment.

  2. Protection of Minority Rights:
    Partners owning more than 10% of the capital may request the appointment of a special auditor or exercise their right to information.

  3. Leaving/Removal from the Company:
    In some cases, partners can be removed from the company or leave by transferring their shares. However, this process depends on the company agreement and a court decision.

Concrete Case Examples Seen in Family Businesses in Antalya

  • Liquidation Case: A liquidation decision was taken in a family company operating in the tourism sector in Alanya as a result of a management crisis between the brothers.

  • Cancellation of Board of Directors Decision: One of the partners of a construction company in Kepez objected to the reinvestment decision taken without profit distribution and had the decision cancelled.

  • Violation of Audit Authority: In a company in Muratpaşa, the minority shareholder's request to review the books was rejected by the management and the court protected this right.

Reducing Risks with Family Constitution and Partnership Agreements

A family constitution is a written document that determines how family members will participate in the management of the company, inheritance sharing, termination procedures and share transfer. In Antalya, such documents are rapidly becoming widespread in large family businesses.

  • Shareholders' Agreement: It regulates the rights and obligations of the partners and clearly states the exit conditions.

  • Appointing an Independent Board Member: A balance from outside the family makes decision-making processes more objective.

Managing Conflicts Between the New Generation and the Founding Generation

  • Differences in Education and Vision: The younger generation suggests different solutions than the older generation, such as education abroad or a digital perspective. This creates conflicts in the transition to management.

  • Conflict in Investment Decisions: Conflict is inevitable between the founding generation, who prefer to invest in traditional sectors, and the younger generation, who are willing to take risks.

  • Sample Cases in Antalya: In the Serik region, a family company engaged in agricultural exports was split up when the new generation's e-commerce move was rejected.

Strategies to Protect the Future of Family Businesses in Antalya

  1. Institutionalization: Putting internal company procedures in writing secures the workflow.

  2. Professionalization: Assigning tasks to expert managers other than family members reduces conflicts.

  3. Open Communication: It is beneficial to establish family meetings, advisory boards and internal communication channels.

  4. IPO and External Investment: Growing the company with non-family resources provides professional oversight and transparency.

Most Frequently Asked Questions

How can a minority shareholder be removed from management?
→ It cannot be removed directly. However, it is possible if there is a regulation in the company contract or if a court decision is obtained.

What happens if profit distribution is not made?
→ Partners may file a lawsuit and demand dividend rights for undistributed profits.

What is the shareholders' right to be informed?
→ Annual activity reports, balance sheets and general assembly minutes may be requested.

Is family approval required for corporate marriages?
→ Share transfers are subject to the company agreement. Approval may be required, especially for sales outside the family.

Is mediation mandatory in Antalya?
→ Yes. In partnership, share transfer and commercial disputes, mediation is mandatory before filing a lawsuit.

Is a secret sale among shareholders valid?
→ If it is against the company contract, it can be cancelled. However, if the official transfer has been made, a lawsuit must be filed.