Family Protocol

It is a commitment established by the members of the Proprietary Family Company in order to reach and ensure (for current and future generations) the company’s standard for success that generates business wealth, and leave it to the generations to come.

A set of agreed participation rules is established so the family owners undertake the commitment to increase the family wealth in order to leave it to their descendants. Their implementation is generally articulated during a corporate restructuring procedure.

What is a family protocol for?

Family protocolThe family protocol makes it possible to professionalize the family company Group by a clear separation of the management, ruling and propriety levels. The relations between the family owners and the family company are regulated, so each part cannot interfere with the other.

It makes it possible to regulate the criteria for the future incorporation of partners’ relatives to the company, both as workers and as shareholders, as well as the criteria to establish their remuneration (a salary or shares). A set of guidelines are established in the management body of every distinct operative company of the family group, with a group of proper transparency standards towards the Rulers and the Propriety.

What pillars is family protocol based on?

Does it have legal value?

The family protocol is a contract, so it has the force of law between the parts required by Article 1.091 of the Civil Code.

Must the family protocol be reviewed?

Family protocol for SMEsThe signatories are obliged to review the contents of the family protocol at least once a year or every two years, without prejudice to the circumstances advising its modification in a previous moment to that determined for the review, and then an extraordinary general meeting must be accorded for this. For example, this could be the case of the death of a shareholder or of a member of the Administration Body, a change in the company’s executive management, transmission for any reason of the social shares or the existence of a legal change affecting the dispositions of the current family protocol.