United States: Proposed Regulations Under IRC Section 2704 Seek To Eliminate Discounts On Transfers Of Family Business Interests

Last Updated: September 27 2016
Article by Kevin G. Robertson

On Aug. 2, 2016, the Treasury Department and the Internal Revenue Service released proposed regulations under Internal Revenue Code (Code) section 2704 (the "Proposed Regulations"). The Proposed Regulations, if finalized in their proposed form, would eliminate most valuation discounts on redemptions and transfers of family business interests among family members when a single family "controls" the business both before and after the transfer.

Set forth below are summaries of the following:

  1. What Code section 2704 covers under current law.
  2. Some examples where the proposed, much-expanded coverage of Code section 2704 under the Proposed Regulations may be unenforceable.
  3. The process for comment, hearing and review before the Proposed Regulations are finalized and become effective.
  4. What family business owners should consider (from an estate planning perspective), given the scope of restrictions in the Proposed Regulations.

1. Scope of Code Section 2704 Under Current Law

Congress enacted "Chapter 14" (sections 2701 through 2704) of the Code back in 1990, to curb perceived abuses in the discounted valuation of property transfers between family members. In general terms, Code section 2704 addressed "certain lapsing rights and restrictions" affecting control of family businesses and/or rights to liquidate interests in family businesses.

NOTE: Under Code section 2704(d)(2), "members of the family" of any individual include (i) his/her spouse, (ii) any ancestor or lineal descendant of such individual or of his/her spouse, (iii) any sibling of such individual and (iv) any spouse of any person described in (ii) or (iii). Further, a business entity is "controlled" by members of a family if the members of a single family hold (a) at least 50 percent of the stock of a corporation (by vote or by value); or (b) at least 50 percent of the capital or profits interest in a partnership; or (c) any general partner interest in a limited partnership.

Code section 2704(a) addresses "lapsed voting or liquidation rights." To date, these concepts have been interpreted as applying only in situations where a voting or liquidation right ceased to exist in the transferred property (i.e., actually lapsed). For example, the primary situation Code section 2704(a) was designed to remedy was the circumstance where a general partner in a limited partnership transferred his/her general partner (GP) interest to a child (or a trust for a child), and both by operation of law and under the terms of virtually every limited partnership agreement (LPA), the transferee became a limited partner (LP) or, in some cases, a mere assignee. That is, the control over the partnership associated with a GP interest ordinarily could not be transferred, only the equity associated with the GP interest could be transferred, and the act of transferring a GP interest had the effect of causing the control powers of the GP to lapse with respect to the transferred interest.

Thus, the proper and narrow application of Code section 2704(a) operated to disallow valuation discounts on transfers of property between family members only if and to the extent a voting right or liquidation right actually lapsed (ceased to exist) by reason of the transfer.

Similarly, Code section 2704(b) addresses so-called applicable restrictions that constrain a shareholder's or partner's ability to cause a liquidation of the business entity (i.e., the investor's ability to realize the "net asset value" associated with that investor's percentage equity interest in the entity by means of causing a liquidation of the entity itself). An "applicable restriction" is the functional equivalent of a "disregarded restriction" in the sense that an applicable restriction must be disregarded in determining the value of the transferred interest for federal transfer tax purposes. A restriction on the transferee's ability to cause such an entity-level liquidation is an applicable/disregarded restriction only if and to the extent such restriction either (i) lapsed by reason of a family member's transfer to such transferee, or (ii) could be removed by the transferor or any member of the transferor's family (either alone or collectively) after such transfer.

  1. Proposed Expansions of the Scope of Code Section 2704 Under the Proposed Regulations

The Proposed Regulations would dramatically expand the applicability of Code section 2704, thereby preventing consideration of a substantial number of actual restrictions on business entity interests transferred between family members. In many instances, the practical effect of the Proposed Regulations would be the elimination (or substantial reduction) of minority-interest discounts and lack-of-marketability discounts for federal transfer tax purposes when the transferor and transferee are "family members."

a. New Three-Year "Deemed Lapse" Rule

One major expansion (without any apparent statutory foundation) in the Proposed Regulations would be a new three-year rule for any gifts of equity interests between family members that effectively would cause the transferor to "lose" personal control of the enterprise. For example, suppose that an individual owns 100 percent of a corporation (Company A), and that individual gifts one-third of the equity in Company A to each of his/her three children, in equal thirds. It has long been accepted by the IRS that each 33.33 percent gift of equity interests was subject to a minority interest discount (because each donee had only one-third of the equity, so no single donee could exercise control). Further, under the current interpretation of Code section 2704, such a gift does not involve any lapse of rights with respect to Company A's equity interests (because each donee's 33.33 percent equity still has voting rights attached to it), nor are there any applicable restrictions on the equity interests that need to be disregarded because the equityholders, collectively, still have authority to liquidate the entity as the donor did prior to the gifts.

Under the proposed three-year rule, if (i) a "family," collectively, has control of a business entity both before and after that individual gifts equity interests to or in trust for the benefit of members of such individual's family, and (ii) the donor dies within three years after making the gift(s) that caused such individual to "lose" the personal legal control sufficient to cause the entity to liquidate, then (iii) the transferor's inability to cause the liquidation of the business entity "caused" by the donor's gifts will be treated (for estate tax purposes) as a "deemed lapse" of the liquidation rights held by the donor prior to the transfer(s), effective upon such donor's death.

Thus, in the simple example above where a donor transferred 100 percent of his/her equity interests in Company A within three years of the donor's death, the Proposed Regulations would include a "phantom asset" in the deceased donor's estate. Even though there was never an actual lapse of any rights associated with the gifted equity interests, the Proposed Regulations would treat the deceased donor as if his/her "liquidation rights" in Company A lapsed at his/her death. Under that tenuous extension/interpretation of Code section 2704, the donor's estate apparently would have to include (and be subject to estate tax on) the difference between (a) the date-of-death liquidation value of 100 percent of the stock in Company A (i.e., as if the decedent had held on to all of his/her stock until his/her death) and (b) the gift tax value of the three 33.33 percent minority-interest gifts donor made prior to (but within three years of) his/her death.

b. Under the Proposed Regulations, a Family Member May Be "Deemed" to Have the Ability to Force Liquidation of the Entity and/or to Force Redemption of the Family Member's Equity Interest

Under a literal reading of the Proposed Regulations, if family members, collectively, could (i) vote to liquidate an entity (or to redeem the gifted interest in question) or (ii) vote to amend the documents governing the business entity (e.g., articles of organization, bylaws, shareholder agreements, partnership agreements or operating agreements) to allow the family to cause the entity to be liquidated (or to redeem the gifted interest in question), then any equity interest transferred between family members would be valued (for transfer tax purposes) as if the family member transferee could unilaterally compel either a liquidation of the entire entity or a redemption/liquidation of his/her own personal equity interest in the entity.

In other words, anytime an equity interest is transferred among family members in a business entity "controlled by" family members, the equity interest would be valued without regard to the actual economic fact that the donee-equityholder cannot compel liquidation or redemption of his/her gifted interest (much less, liquidation of the entire business enterprise). Thus, anytime an equity interest in a family-controlled entity was gifted, that equity interest, for transfer tax purposes, would be valued no lower than what the Proposed Regulations describe as the "minimum value," conveniently defining minimum value to be the equity interest's "share of the net value of the entity determined on the date of liquidation or redemption." The Proposed Regulations would create an assumption that the donee-equityholder had the power to compel a liquidation of his/her interest in the entity at a price equal to the equityholder's pro rata share of the net liquidation value of the enterprise on the date the interest was transferred by gift or inheritance to the donee, payable in six months.

It always has been a fundamental premise of corporate law that no individual shareholder ordinarily is able to compel a liquidation of the corporation or to compel a redemption of his/her own shares at any time. Similarly, in partnerships and limited liability companies and any other form of business enterprise (other than a sole proprietorship, where all decisions are made by only one person), no single equityholder can cause the business to terminate and be liquidated, nor can a single equityholder "force" the business entity to redeem that shareholder's interest at "full liquidation value" (i.e., as if the entire enterprise sold all of its assets and distributed to that single equityholder an amount equal to an undiscounted percentage of that value corresponding to his/her percentage equity ownership in the business).

Consequently, one of the basic valuation discounts applied in connection with evaluating any equity interest in a closely held business enterprise has been the so-called closely held business discount or locked-in discount, reflecting the quite real economic fact that if an investor buys a noncontrolling interest in a business enterprise, that individual would not have any legal ability to compel a redemption or buyout of the investor's equity in that business enterprise. The Proposed Regulations propose to adopt a rule in family-controlled business settings where it is "deemed" in all cases that the family would take steps to redeem any minority equityholder in the family, at full pro rata redemption value (i.e., as if all the assets of the business had been sold) at any time.

Such a rule would be both unfair and unrealistic. In the real world, no business could be operated if any and all equityholders, at any time, simply could demand "full fair value" redemption of their equity interests.

c. Disregarding Liquidation Restrictions Imposed by Federal or State Law

The Proposed Regulations also would disregard virtually all restrictions on liquidation of an entity that are "default" provisions under applicable state law (i.e., provisions that apply in the absence of an explicit agreement among the equityholders of the enterprise or an explicit term contained in articles of organization, bylaws or other documents setting forth governance rules for the enterprise). The Proposed Regulations would not permit state law restrictions (such as, for example, a state law rule requiring unanimous approval or a supermajority of equityholders to compel a liquidation of the business entity) unless such restrictions could not be changed or superseded by agreement among the equityholders or by the specific governing documents of the enterprise.

Thus, even though the statutory language of Code section 2704(b)(3)(B) (commonly referred to as the "state law exception") indicates that restrictions on liquidation "imposed, or required to be imposed, by any Federal or State law" may be taken into account in determining the gift/estate tax value of a transferred interest in a business entity, the Proposed Regulations would permit consideration only of those state or federal law restrictions "required to be imposed" (in effect, reading out of the statute the words "imposed, or ...").

Such an interpretation of the state law exception under section 2704 would nullify the exception, since virtually no "default" restrictions on liquidation under federal or state law are "absolute." The current, widely accepted interpretation of the state law exception makes much more sense: If a restriction on liquidation contained in the documents governing liquidation of a particular enterprise is no more restrictive than the "default" provisions of state or federal law, then such restriction may be taken into account in valuing an equity interest in that enterprise.

d. The Proposed Regulations Would Limit the Extent to Which Nonfamily Equityholders May Be Considered

The Proposed Regulations also include proposed restrictions on when nonfamily equity holdings may be taken into account in determining whether a single family has control of a business entity. Instead of considering the actual percentage of equity interests held by all nonfamily members in evaluating whether a family, collectively, controls the enterprise, the Proposed Regulations would disregard virtually all nonfamily equityholders by imposing arbitrary and unrealistic conditions on the recognition of nonfamily equity holdings.

As proposed, a nonfamily equityholder would be taken into account only if (i) the nonfamily member has held the equity interest for at least three years before the transfer at issue; (ii) on the date of the transfer, the nonfamily member holds at least a 10% equity interest in the enterprise; (iii) on the date of the transfer, nonfamily members, collectively, hold at least 20% of the equity interests in the enterprise; and (iv) each nonfamily member has a "put right" allowing such nonfamily member to force a redemption of his/her/its equity interest (with six months' notice) at a value at least equal to such nonfamily member's equity percentage multiplied by the full net asset value of the enterprise (i.e., a redemption at full liquidation value, without any discounts).

Interestingly, the three-year holding rule would mean that no nonfamily member equity interests could be taken into account in the first three years of an enterprise's existence! If there is a concern that the nonfamily members' interests were "illusory" on the date of transfer, why not test nonfamily ownership during the three years after a transfer is made? The 10 percent/20 percent equity ownership requirements appear to be arbitrary. The most impractical and unrealistic requirement is the put right that a nonfamily equityholder must have in order for his/her equity holding to "count." Except in rare instances, such as partnerships that invest primarily in marketable securities, it would be difficult for a business or investment entity to grant any equityholder an absolute right to "put" his/her/its equity interest and demand a redemption with six months' notice at full liquidation value. As a practical matter, by requiring that such a put right be granted to a nonfamily member before that nonfamily member's equity interest is taken into account for purposes of determining family control of an enterprise, the Proposed Regulations would disregard virtually all nonfamily member equity interests.

e. Disregarding Redemption Values Reflected in Some Promissory Notes

One final expansive feature of the Proposed Regulations is the definition of "property" that the Regulations would consider as having been paid in redemption of an equityholder's interest. In connection with redemptions of most closely held business interests (family-controlled or not), it is customary for a redemption to be paid in installments over a period of several years. Depending on the net cash flow available (and always subject to restrictions imposed by commercial lenders), it is not uncommon for the promissory note portion of any redemption price to be payable over a term of five to seven years (with the redeemed shareholder retaining a security interest in the equity being sold/redeemed).

The Proposed Regulations indicate that the portion of redemption proceeds payable in the form of "a note or other obligation" will not be considered "other property" being paid to a redeeming equityholder unless (i) the entity is engaged in an active trade or business; (ii) at least 60 percent of the value of the entity consists of "non-passive assets" of that trade or business; and (iii) only to the extent that the liquidation proceeds are not attributable to passive assets (within the meaning of Code section 6166(b)(9)(B)), "such note or other obligation is adequately secured, requires periodic payments on a non-deferred basis, is issued at market interest rates and has a fair market value on the date of liquidation or redemption equal to the liquidation proceeds." (Emphasis added.)

The requirement of "market interest rates" is at odds with the custom and practice of issuing such notes at or slightly above the applicable federal rate (AFR) determined under Code section 7872. Since Code section 7872 was enacted (and operates) to create a bright-line threshold interest rate (the AFR) so that related-party notes and obligations that bear interest at or above the AFR generally do not result in gifts or in original-issue discount problems, why would the Proposed Regulations not permit notes or other obligations issued in connection with redemptions of equity interests to be issued at the AFR?

It is unclear how a taxpayer would demonstrate that a promissory note or other obligation "has a fair market value on the date of liquidation or redemption equal to the liquidation proceeds." In this context, is the phrase "liquidation proceeds" supposed to mean the "face value" of the note or other obligation? Even if the note is "adequately secured," it is common for such redemption notes to be assignable by the payee only with the consent of the redeeming business entity, and the mere fact that the payor is a closely held business arguably might be enough to cause the note to have a "fair market value" on the date of its issuance of "less than" its face value or the liquidation proceeds (whatever that would mean in this context).

f. Presuming Harmonious, Complete Family Control Is Unrealistic

A recurring assumption embedded in the Proposed Regulations is that a "family-controlled enterprise" will, in all circumstances, be operated so that any individual family member effectively will be able to convince the collective members of the family to exercise control in a manner that will allow that individual transferee (or, in some cases, the transferor, with respect to retained equity interests) to cause a redemption of his/her interest in the family-controlled enterprise at any time with a mere six months' notice, and that the redemption would allow the family member to realize the equivalent of a full liquidation value (i.e., as if the entire enterprise were liquidated and the family member would receive his/her full pro rata share of those "deemed" full liquidation proceeds).

Such family harmony or commonality of purpose is often absent in family-owned enterprises. Rather than assume that all families operate their businesses without the conflict or contention found in many businesses, it would seem more realistic to consider whether any particular restriction on an individual equityholder's powers to "liquefy" his/her interest and/or to compel a liquidation of the enterprise is consistent with the types of restrictions customarily employed in businesses that are not controlled by a single family.

Code section 2703(b) already contains a statutory standard that, until now, has provided taxpayers with fairly clear guidance on the types of agreements and restrictions on equityholders that should be recognizable for federal transfer tax purposes, especially in the context of restrictions on the circumstances under which an equityholder (family member or not) may "force" a redemption of his/her personal equity interest in the enterprise. The principles of the Section 2703(b) exception indicate that a restriction on a family member equityholder's rights to use or sell his/her property interest will be respected (and taken into account when valuing such equityholder's interest for transfer tax purposes) if the following standards are met:

  1. [Such restriction] is part of a bona fide business arrangement.
  2. [Such restriction] is not a device to transfer such property to members of the [transferor's] family for less than full and adequate consideration in money or money's worth.
  3. The terms [of such restriction] are comparable to similar arrangements entered into by persons in an arm's-length transaction.

It is likely there would be years of ongoing taxpayer challenges to any Regulations that would seek to override the application of the 2703(b) exception and apply a new default set of rules for transfer tax valuations involving family-controlled business interests. To avoid a protracted period of uncertainty, this portion of the Proposed Regulations may well be withdrawn or further limited.

  1. Comments/Hearings and Effective Date Procedures Regarding the Proposed Regulations

The Notice of Proposed Regulations provides for a written comment period, followed by a public hearing in Washington, D.C., on Dec. 1, 2016. To be considered at the hearing, written comments must be submitted by Nov. 2, 2016.

Given the broad scope of the Proposed Regulations, and given the numerous new rules, restrictions and interpretations they would impose, it seems likely that the final version of the Regulations will be modified significantly. The Proposed Regulations will be commented upon (and likely criticized) by any number of groups representing taxpayers and tax professionals (such as the American Institute of Certified Public Accountants, the American Bar Association and the American College of Trust and Estate Counsel).

The preamble to the Proposed Regulations indicates that the proposed changes, as reflected in the final version of the Regulations, generally are proposed to apply (i) "to lapses of rights created on or after October 8, 1990," and (ii) "to transfers of property subject to restrictions created on or after October 8, 1990," in both cases "occurring on or after the date these regulations are published as final regulations." The provisions of proposed new Regulation 25.2704-3, under which the newly defined concept of "disregarded restrictions" would apply in evaluating the rights of a family equityholder to have his/her/its own equity interest redeemed (i.e., without causing a liquidation of the entire business enterprise), are to be effective no earlier than 30 days after the final regulations are published.

As a practical matter, it seems likely that final regulations under Code section 2704 will not be issued until sometime in 2017, at the earliest.

  1. How Should Family Business Owners Plan Now?

The threat posed by the Proposed Regulations is considerable. If the regulations were to be finalized "as is," the traditional valuation rules applicable for federal transfer tax purposes to equity interests transferred between family members would be dramatically changed. The level of discounts for lack of control, illiquidity and the closely held nature of equity interests all could be reduced artificially and severely.

Accordingly, the topic of business succession planning and potential wealth transfer planning with closely held business interests should be considered with renewed vigor over the balance of 2016 by any individual with an estate potentially subject to the federal estate tax. If a senior-generation family member is willing to consider transferring equity interests in a closely held enterprise this year, then the ideal approach would be to plan and execute such transfers before Dec. 1, so that the transfers would be complete before these Proposed Regulations become final.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.