WHY PREPARING for a founder’s departure is one of the greatest responsibilities of leadership
The full-house gathering at Makati Sports Club discussed the critical importance of the Shareholders’ Agreements (SHA) and family governance. But beneath the technical discussions was a far more urgent message: the importance of preparation, the cost of delay, and the consequences of believing there will always be a later.
This message has become deeply personal to me.
Several of my clients are battling terminal illnesses. I am out of the country again to visit one whose doctors have given him approximately six months to live. He has personally appealed to me to help him put his affairs in order during what may be his final months. He has also given me his blessing to share his story, provided his identity remains protected. I do so with deep respect for his trust, his dignity, and the family navigating this difficult chapter with him.
It is heartbreaking to witness the transformation of a founder who once commanded a business he built from nothing through sheer force of will, determination, and control. Now, I see a man confronting his own vulnerability, searching for strength in prayer, and facing the uncertainty of what lies ahead. Behind the formidable leader is a human being coming to terms with the limits of time.
Meanwhile, I can see strains emerging within the family. Unresolved differences, questions of responsibility, and uncertainty about the future become more apparent when the founder can no longer hold everything together through the force of his personality. These challenges are not unique to one country or culture. They can confront family enterprises anywhere in the world.
My responsibility goes beyond attending board meetings and advising clients. It means helping ensure that the founder’s affairs are in order while there is still time to make decisions, communicate intentions, and put the necessary safeguards in place.
The work goes beyond documents. It means ensuring that the founder’s wishes are properly documented, ownership and succession arrangements are clear, key decisions are recorded, and the family understands what must happen next. It means reviewing the Family Constitution, Shareholders’ Agreement, wills and estate arrangements, board and management succession, bank signatories and access to critical records, creditor obligations, business continuity plans, and the people authorized to make decisions if the founder becomes incapacitated or passes away. Each situation requires appropriate legal, financial, and professional advice.
I am also preparing what I call a sudden-death checklist. It may sound morbid, but it is a practical necessity. When a founder dies unexpectedly, the family is often left in shock while the business continues to demand decisions. Creditors need answers. Shareholders want clarity. Business partners need reassurance. Employees look for direction. Family members must confront grief while trying to understand what happens to the business, the ownership, and the legacy.
Even with preparation, the process is difficult. Without it, confusion can compound grief, disagreements can intensify, and decisions that should have been made calmly may be forced upon a family under immense pressure.
That is why I struggle when leaders and families tell me they will address governance, succession, or ownership arrangements later.
Later, when the founder is less busy? Later, when the family is ready? Later, when the business has grown further?
The uncomfortable truth is that we do not control the time we have left. A diagnosis can change a family’s priorities overnight. An unexpected death can turn unresolved questions into urgent disputes. What could have been a thoughtful conversation becomes a crisis meeting.
Governance is not merely about compliance, control, or preparing legal documents. It is about making sure that the people left behind are not forced to guess the founder’s intentions, fight over undocumented decisions, or carry the burden of preventable uncertainty while grieving.
We cannot eliminate the pain of losing a founder. But we can reduce the confusion, conflict, and disruption that follow when important matters remain unfinished.
Someday is never guaranteed. If there are conversations to have, decisions to document, or responsibilities to transfer, the right time to begin is while the founder can still lead the process.
Because a legacy is not measured only by what a founder builds during a lifetime. It is also measured by how well the family and enterprise can carry on when that lifetime ends.
Author’s Note
Prof. Enrique M. Soriano is Executive Director of W+B Family Advisory Group and a Senior Accredited Director of the Singapore Institute of Directors (SID). A former World Bank/IFC Senior Governance Consultant, he advises boards and multi-generational family enterprises across Asia on governance, succession, and long-term stewardship./PN
