Stewart McKelvey

what external support is available for the succes- sor, who the key contacts are, and where important documents are located. Issue identification summary – this is a personal- ized document that summarizes the issues identified through individual meetings and the consultant's experiences with other families in business and can serve as the foundation for a facilitated family dis- cussion. Key issues might include the short and long term objectives of the stakeholders, ownership and management succession planning objectives, and what governance structures are in place. Family participation plan – this provides guidelines and manages expectations for family employment in the business. For example, it can outline who is eligible to join the family business, what experience or education is required, and how family members will be compensated. Forward work program – this flows from the issue identification summary and follows the facilitated sessions by identifying specific actions and the per- sons responsible to address those items. What Are the Succession Options? A true succession plan involves naming a family member or members as a successor. This is generally the preferred outcome of the process. To the extent that certain family members will be participating in the business on a go-forward basis and others will not, the owner will likely consider estate equalization through other assets for those non-participating chil- dren. Other outcomes to a succession planning pro- cess when no family member is identified as successor include appointing a professional manager (whether through a management buy-in or as a non-equity manager) or sale of the business in whole or in part (which creates immediate results, but which caps the owner's financial interest in the business and elimin- ates the possibility of future family involvement). What Can Business Owners Do About Succession Planning? The most important thing business owners can do is to start planning early. The sooner the process starts, the better the outcome will be. Owners should encourage intergenerational teamwork, in- volve family and colleagues in their thinking and in the process itself, take advantage of outside ad- visors, establish a training/development process for family members, plan for retirement and decide on a retirement date and stick to it. As the Canadian Capital survey found, 86% of respondents thought it was important to leave a lasting legacy. A formal, written succession plan encompassing all these issues can help business owners in Atlantic Canada achieve that goal. Richard Niedermayer Halifax, NS 902.420.3339 rniedermayer@stewartmckelvey.com THE ATLANTIC FISHERY AFTER SAULNIER: NOT ALL SECURED CREDITORS ARE ALIKE By David G. Henley O n October 24, 2008, the Supreme Court of Canada released its decision in Saul- nier v. Royal Bank of Canada, 2008 SCC 58, arguably the most important decision for the fishery since its 1997 decision of Comeau's Sea Foods Ltd. v. Canada (Minister of Fisheries and Oceans). The Saulnier decision rep- resents a significant improvement in the ability for creditors to take a security interest in fishing licences. However, policies issued by the Depart- ment of Fisheries and Oceans (DFO), as well as the inherent discretion afforded the Minister by the Fisheries Act, continue to affect the efficacy of such security, particularly for creditors which are not "Recognized Financial Institutions" (RFIs) under the policies. The Court recognized that in spite of policy statements by the Minister of Fisheries and Oceans, the reality is that the commercial market operates on the basis that there is a reasonable degree of cer- DOING BUSINESS IN ATLANTIC CANADA SUMMER 2011 3

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