How are family businesses organized? Protocol and characteristics

What is a family business? How are organizational chart for a family business?How is a family protocol created? From Gentile Law, experts in advising family businesses, both Spanish and foreign, we explain it to you in the following article.

What is a family business?

What is a family business? How are organizational chart for a family business? Family businesses are companies that are owned and operated by members of the same family. These types of businesses are quite common and can be found in many industries and sectors.

Family members often work together and have a shared sense of ownership and commitment to the success of the business. However, this can create challenges such as conflicts over decision making, succession planning and balancing family dynamics with business operations.

What is a family enterprise? Family businesses are defined as those companies where a family or a group of families hold significant percentage of the share capital and are involved in the management of the company.

How are organizational chart for a family business?

How are organizational chart for a family business? In Spain, the organizational chart of a family business will vary depending on the size of the company, however a typical organizational chart for a family business includes the following positions:

• Board of Directors: they are responsible for setting the strategic direction of the company and overseeing its management. The board is typically up of family members, as well as outside counselors.
• General Manager: is the responsible for the day-to-day operations of the company.
• Family Council: is the responsible for managing family relationships and ensuring that family members are involved in the management and decision-making of the business.
• Shareholders: are the family members who own shares in the company and have a say in its management and decision-making.

In larger family business, there may be additional positions such as senior executives, advisory boards, department heads. How are organizational charts for a family business? In general, the structure and organizational chart of a family business will depend on the specific needs and objectives of the company and its owners.

How do you create a family business protocol?

What is the protocol of a family business? How is a family protocol created? At Gentile Law, experts in advising family businesses, we will explain it to you. The family protocol is also known as the family constitution, which is the document that outlines the procedures, policies and guidelines that govern the relationship between family members and the family business.

In other words, is a critical tool for managing the complex relationships between the family members and the business and ensuring the long term success and sustainability of the family company.

Normally, the family protocol includes a range of topics such as: ownership, management and governance, employment, conflicts of interest, succession planning among others.

In conclusion, family businesses play a significant role in the global economy, with many successful being family-owned and operated. However, they face challenges that can impact their sustainability and long-term success, like succession planning, separating family and business issues, capitalization, innovation and other.

At Gentile Law, lawyers expert in commercial law, we have years working with family businesses and we are prepared to advise you on all kinds of questions you may have related this topic. How are family businesses organized? How do you create a family business protocol? Do you need to carry out corporate acts?Our family business lawyers will accompany you through the whole process.