The regulation of the family protocol as an instrument in the succession planning of family business in Brazil

Abstract

The family businesses are a major factor in the economic infrastructure of a modern society, serving as fundamental basis in the Brazilian and worldwide entrepreneur field. However, the studies about this type of enterprise have only emerged with significant strength by the end of the last century, becoming a topic of exponential relevance in the economical and legal areas. That said, the necessity of finding ways to guarantee the longevity of businesses arises, because they are able to provide the income of several Brazilian families and also significantly contribute to improve the national economy. In this context, the family protocol could ease this process, nevertheless, its current lack of legal bounding lowers its effectiveness, in a way that the Brazilian family businesses are short of adequate instruments to maintain the continuity of the activities. Through theoretical studies, this research aims at analyzing the organization of family businesses and its flaws in the succession planning process, with the desire to verify how the family protocol might help the new generations to grow together with the corporation. Thus, the concept of this instrument will be investigated, as well as the current ineffectiveness of its applicability. Therefore, the final objective is to find the confirmation of the hypothesis that the regulation of the family protocol is extremely positive to a better succession planning process of family businesses in Brazil. The legal science cannot let aside this reality and the possible advantages derived of such regulation. This way, both businesses (specially the small and medium sized ones) and the national economy will benefit from the regulation of the subject. (AU)