Arnault's children will be prohibited from selling LVMH shares for the next 29 years

In a strategic move, Bernard Arnault, supreme head of LVMH, has strengthened the governance structure of his empire, limiting the sale of family shares until 2052 and ensuring his family's control for the next three decades. This measure grants Bernard Arnault the possibility to lead as a director with unlimited powers of Agache, the family company that controls LVMH, until his 95th birthday. The question of control of Agache revolved around the youngest of Bernard Arnault's sons, Jean, head of Louis Vuitton's watch division, who will celebrate his 25th birthday today. Until today, in the event of Arnault's death, LVMH's ownership would have passed ad interim to a board of Belgian managers from Protectinvest together with two Brussels companies holding 65% of Agache Commandité. This company was purposely set up and equally controlled by the brothers Delphine, Antoine, Alexandre, Frédéric and Jean Arnault who own equal parts of the capital and who will, basically, be the only ones authorised to manage it.

The succession plan for LVMH's leadership was defined in detail and well in advance by the French businessman, who recently slipped from second to third place in the list of the world's richest people, following Elon Musk and Jeff Bezos. The purpose of Protectinvest was to safeguard LVMH's financial and patrimonial interests in the event that Bernard Arnault should pass away before his youngest son Jean's 25th birthday. But now that the birthday has passed, control of Agache, through which the Arnaults hold 48.18% of the shares and 63.71% of the voting rights in LVMH, will remain firmly in the hands of the Arnault family. According to Agache's articles of association, only the five brothers or their direct descendants can be shareholders in the company, and no one can sell shares until 2052. In addition to the general partners with controlling rights, Agache has two limited partners with patrimonial rights only, namely Bernard Arnault's two grandchildren, Ludovic and Stéphanie Watine, children of his younger sister Dominique Arnault, who died in 2006, who control 19% of the holding company.