The Tini Stoessel case exposes something I see very often at the firm: the trap of “we trust each other, so we don’t sign anything”. Creators or entrepreneurs who generate all the value of a business, but have no access to or control over the corporate information or the royalties.
A common problem in family structures
It is a recurring situation in the corporate and commercial world, especially in family businesses and structures: professionals or entrepreneurs who generate a project’s value but have no access to the corporate and financial information of the entity that receives that income.
When revenue is concentrated in a company where the person generating the business has no shareholding or oversight powers, the lack of protection is total. And the usual thing happens: whoever brings in the money has to look for outside contracts to get cash, while management holds on to the funds without accounting for them.
In a case like this, a thorough due diligence on the ownership of the rights to the songs is essential to clearly understand how royalties are actually distributed.
Three pillars of asset protection
- Corporate control.
- Mandatory accountability.
- Ownership of the rights.
Personal trust is no substitute for legal formality. Contractual transparency is the only guarantee for preserving assets over the long term.
Advice on this topic
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