Who occupies the founder’s empty chair for 30 days?

Working principle

Knowledge of the business is not a substitute for director, shareholder or banking authority.

One person may combine four systems

A DGA is often simultaneously director, shareholder, bank signatory and the principal holder of practical knowledge. When the chair is empty, these functions do not pass automatically to one relative.

During the first day, signature, payments and the authorised contact matter. During the first month, payroll, clients, management and shareholder decisions matter. After one year, the system needs a sustainable replacement and an economic outcome for the family.

Value, vote and management are designed separately

A child who works in the business may be a suitable manager, but that does not resolve the allocation of value. Non-working children may hold an economic interest without an operational role. Shareholder voting and director management also require different legal bases.

The Event × Horizon matrix makes these distinctions visible before a STAK, SHA or tax route is selected. Tax relief does not cure the absence of a lawful decision-maker.

Signals

Review this if you recognise your system

only the founder can sign or instruct the bank
the team knows the substitute but no corporate appointment exists
children have been promised ‘equal shares’ without defined roles or liquidity

Next actions

Three steps before choosing a document

01work through 24 hours, 30 days and 12 months
02separate director, shareholder and bank roles
03frame questions for corporate counsel and the bank

Apply

DGA succession matrix

An Event × Horizon agenda for corporate, valuation, liquidity and tax workstreams.

Open tool

Go deeper

DGA and business succession control

The scenario map separates the family’s economic outcome from shareholder voting, the director role and operational continuity.

Open route Related chapter →