Conflicts in the family business: prevention and resolution mechanisms

Like any business structure, the family business can be affected by some contradictory situations arising from differences between the partners that make up it. In addition, due to its unique characteristics, it is a family business. facing certain problems It arises from the relationships between the company and the family, and its members must accept the possibility that conflicts may arise.

In this context, taking into account the special situation of each family business, Adequate applicability of legal instrumentsfor example family protocols or shareholder agreementsserving prevent and predict conflicts or in case of problems that may arise, the regulation of particularly compromised issues such as generational change or business transfer, distribution of dividends, leadership rules for managing partners and protection of non-managing partners, the company’s relations with partners, managers or other relevant persons, regulation of the transfer regime of social shares, among others.

Ramón Jareño, partner in charge of Garrigues Commercial Law in Alicante INFORMATION


conflict prevention mechanisms In the family business, these rules should be implemented within the framework of the global regulation process of relations between partners and between them and the family business, thus allowing the management of the company to be planned. Resolving disputes, To minimize the damage or consequences that such disputes may have on the development of business activities.

in the same frame conflict preventionMechanisms aimed at ending the resulting conflict will also need to be established. On the one hand, the creation of forums within the framework of the conflict prevention strategy contention And discussion within the business or family organization, such as family councils or assemblies, and on the other hand, anticipating the possibility that the company and/or family members will not be able to resolve the conflict on their own.

Miriam Ferrándiz from Garrigues Litigation and Arbitration department. INFORMATION


In this case, you should consider the possibility of visiting a doctor. mediation procedure, The conflicting parties are thus assisted by a mediator, a neutral third party who, without binding decision-making power and based on pragmatic principles, attempts to bring positions closer together and make an agreement workable to put an end to the dispute.

Finally, if the parties cannot reach any type of agreement, argument If it has to be finally resolved by a decision imposed by a third party, it will be possible to foresee from the outset and taking into account the specific circumstances of each case, that the discrepancy will be submitted to arbitration or traditional judicial remedies.

In every situation, expert technical consultancy In this regard, it is essential to prevent and adequately plan the resolution of disputes arising within the family business, to provide more legal certainty to the parties involved and to enable the dispute to be resolved in a shorter time, resulting in less interference in business activities.

Source: Informacion

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