When we hear about family business, it is common to hear that:
“The first generation of constructs, the second maintains and the third destroys”
This idea, often repeated over time, is certainly a reflection of popular wisdom, it raised us the interest in this subject, so the company has developed internal expertise to provide a follow-up to these companies dealing with their idiosyncrasies .
The aforementioned phrase, makes us approach to family businesses from two different perspectives:
- On one hand, the reality of family businesses as a whole;
- On the other, the specific problems of succession in this type of companies.
The specific interest of the theme, especially in the perspective of succession and the implications that this raises in corporate governance both on legal perspective and at the level of management itself can be proven by the importance that this “business model” has revealed in the global economy or in the Portuguese economy
It is important to emphasize the role of such companies in the Portuguese economy, both for its representativeness in the economy, as the stability that they assure as a long-term business, but also for the specific binding that they develop with local communities.
Because we recognize the vital role of family businesses in our economy and we understand the characteristics and specificities, both in the corporate aspect as well as in the relationship between society and family, we have developed this practice and deepen our knowledge in this area, is so that we can support and develop these companies, but also to regulate the own family interecção.
We believe that in Fonseca Santos & Associados – Sociedade de Advogados, we have the expertise and experience to ensure that these issues are addressed in order to benefit primarily the company and the continuity of the same in the family as well the family stability, thus contradicting the famous phase above.
In addition to the usual services that a specialist in Corporate and Tax Law can provide the experience that the firm has in this area it can be an asset to your the family business. Once the family business recognize that there are certain management processes and legal documents that can be implemented in family businesses in order to facilitate the management of the company and ultimately facilitate the transfer of power and successfully overcome the problem of “succession” we offer among others:
- Monitoring and implementation of a Board of Directors in a company that is also compatible with the family interests, analyzing case-by-case basis;
- Implementation of an Advisory Council;
- Preparation and implementation of a Family Protocol;
- Implementation of an independent member on the Board of Directors;
- Establishment of a Family Council.
The mechanisms referred above seeks to solve the problems that are commonly pointed to family businesses, in addition, also seek to solve the problems that arise from the tension created by the relationships between: Family – Property (shareholder) – Business.
So, you can continue to rely on our team on an effective management of a family business as well to organize or reorganize your family heritage, we must highlight the role that tax law plays in all these proceedings that should never be overlooked.