The family protocol is a written document that clearly expresses the relationship between family members and the company's management policies. Therefore, there is an interrelation between business planning and family planning, whose main objective is not to eliminate conflicts but to ensure they do not arise.
For the preparation of a family protocol, relevant elements must be taken into account, such as: "the freedom of all participants, the pact of honor of those who sign it, the family values that will be transmitted from generation to generation, and a harmonious intra-family relationship that must be understood as a family and business unit" (Lozano Posso, 2000, p.58).
Now, once all these steps have been followed and the family protocol has been established, the company must continue to convene different meetings to report to members on current matters concerning the family business, resolve situations related to what has been agreed upon, and make adjustments that the protocol requires as a result of transformations in the family, the company, and the market.
In line with the above, to avoid or manage such conflicts within the family company, there are family protocols that provide rules and guidelines to adequately address problems. That is, "it is a preventive instrument which is a contract signed by family members, and for its perfection, only the agreement of wills of the parties is necessary" (Luis Carlos Pinto, 2013, p.12).
According to the Superintendence of Companies, Official Letter 220-034920 of May 25, 2012, the family protocol has binding force, just like a contract under Article 1602 of the Civil Code; it is law for the parties and cannot be invalidated except by mutual consent or for legal reasons. Likewise, under Article 1603 of the Civil Code, such contracts must be executed in good faith and therefore bind not only what is expressed therein but also all things that arise precisely from the nature of the obligation.
The family protocol is characterized as consensual because it is perfected with the agreement of wills of the parties who sign it; plurilateral because several people participate in it; of successive execution because obligations are fulfilled over time; parallel to the corporate bylaws because they are ancillary agreements to the company contract; freely executable because the parties can discuss the clauses it will contain; commutative because it contains reciprocal obligations for the persons who sign it; and onerous because it generates utility for both parties.
As has been stated, the nature of the family protocol is eminently contractual, since it arises from a consensus reached within the family business to regulate the relationship between the company and the family, thereby generating business well-being. Therefore, when creating a family protocol, one must seek an objective aimed at the growth and strengthening of not only the company but also the family, since personal interests will not be taken into account but rather general interests that avoid internal conflicts in the family company.
The changes that society undergoes over time in the market can often make what was designed by past generations somewhat out of context, requiring the intervention of new technologies, updating administrative processes, among others, since as the number of family members increases, there are also different opinions and ideas. Hence, "any successor may present their proposal for change regarding the management of the company that is being implemented in the protocol when the assembly allows forums for modifications or amendments to it" (Lozano Posso, 2000, p.23).
In conclusion, the family protocol is a contractual act that will include rules for both the company and the family, and especially the family element within family protocols gives a flexible and abstract character to the figure. That is, the family itself, according to its values and customs, among other factors that may vary, and where they themselves, through their members, reach an agreement that comes into legal existence, where its members can discuss the stipulated clauses, and if there is disagreement with any of them, its members can submit a proposal to the family assembly to consider changes within the protocols. All this depends on the protocol being well-structured for these cases. This means that it is recommended that protocols be reviewed by future generations to make adjustments deemed convenient for the proper functioning of the company.