How an FIC is Structured and Funded

When considering a Family Investment Company (FIC), understanding its structure and funding is crucial. An FIC typically includes at least two classes of shares, each serving a distinct purpose:

1. Share Classes: Control vs. Value

* Voting Shares (often called ‘A’ Shares):
* Economic Shares (often called ‘B’ Shares):

This dual structure allows a family to separate control from economic benefit, mirroring the dynamics of a trust while leveraging the flexibility and legal certainty of company law.

2. Funding the FIC

There are two primary ways to fund a Family Investment Company:

* Capital Injection: By issuing shares in exchange for funds contributed by the founder.
* Shareholder Loan: The founder provides funds as a loan to the FIC.

An FIC is not a one-size-fits-all solution. Its design must align with the family’s goals, governance preferences, and tax position. Careful planning at the outset ensures that the structure is effective for wealth preservation and intergenerational planning.

How Porte Can Help

At Porte, we guide families through every stage of establishing a Family Investment Company—from structuring share classes to managing governance and tax implications.

If you’re considering an FIC, reach out to us for a tailored consultation that protects your legacy while keeping control in your hands.