Family protocol

Your family shares ownership of a company and you want to put in writing working rules, the entry of family members, the distribution of results and succession, in order to prevent conflicts.

What a family protocol is

The family protocol is a framework agreement that orders the relationship between family, ownership and company. It defines values, rules of coexistence and decision-making criteria, and seeks to separate the family sphere from corporate management.

It is not a typical corporate agreement regulated by the Argentine Companies Law, but rather an instrument that combines clauses of different natures. Its force depends on how it is articulated with the bylaws, shareholder agreements and instruments under the Argentine Civil and Commercial Code.

Usual contents

It usually regulates the entry and development of family members in the company, the dividend policy, the conditions for transferring interests, family governance bodies such as the family council, and conflict-resolution mechanisms.

To give legal effect to its provisions, many clauses are transferred to the bylaws, to share pooling agreements or to instruments such as a trust, depending on the family's objectives.

Succession and continuity

The protocol is a key tool for planning succession and generational continuity. Anticipating the handover reduces uncertainty and helps preserve the value of the company.

Its drafting requires a process of family dialogue that legal advice accompanies and translates into clear, enforceable clauses.

Common mistakes

• Drafting a purely declarative protocol without instruments that make it enforceable.
• Failing to align the protocol with the bylaws and shareholder agreements.
• Postponing succession planning until a conflict arises.
• Confusing the family's finances with the company's finances.
• Omitting clear mechanisms for resolving disagreements between family branches.

Frequently asked questions