Aragon & Aragon (Guatemala Law Firm / Abogados en Guatemala)

Until the law separate us

"Transparency, clear information and foment the dialogue between all the members of the team", are the keys to survive...

In the last session, celebrated in the Chamber of Commerce of Aviles, about family-company direction in the succession and relationships, one of the attendees revealed its keys to survive: "Transparency, clear information and to foment the dialogue between all the members of the team".

If in addition you elaborate a similar protocol, it will classify the case as: "Transit to the fourth generation with excellence characteristics". In a few days, Esther Alvarez – Quesos La Peral owner was awarded with the gold medal for Work Merit.

In the exhibitions passing to the PYMES I perceived certain confusion when discussing the subject "authoritarianism and enterprise leadership". I will try to clarify this weakness detected in little but serious cases. ¿How would you define to a head of household who threatens his wife with separation if she does not sign company papers? ¿What qualifying would you use towards to a patriarch whom it compels to its children that will not leave "nor the legitimate they earn"? ¿what name would you use towards to any who automatically annuls any the attempt of participation?

My purpose is not look for guilty people, but to identify problems and to search for solutions. For it a radical change is essential. If somebody uses disqualifications or insults towards any member, immediately I refuse to collaborate in the subject. Whatever the excuse that argues. In such circumstances, is very complicated to mediate, to arbitrate or to conciliate. My recommendation is to collect tests and to put the case into the hands of the justice, advised by a lawyer.

Is necessary a management of change to democratize the government.

In my opinion, such members do not pay attention to the personal development of their heirs. They argue with the defense that they do it for the company or the family good. But when the "owner" passed away, exists high risk of failure.

Is necessary a management of change to democratize the government. Which does not mean the loss of leadership, but all the opposite. The true leader acts according to rules consents in assemblies. The leader of the future bases his strategies on a professionalized direction with reviews analyze the yield, which will help for to have total confidence in the project. Thus the things, the greater weaknesses detected is the lack of formalization of administration advice, general stockholders' meeting and familiar control systems.

The participants attendees to the mentioned sessions, demonstrated to they know how to engage in a dialog and to listen; essential strengths in the periods of crisis. Also, whatever more sensitization exists on the possible conflicts, easier will be to surpass them. From there the importance that the true leaders grant to the formatives events. The powerful junctions organize trips to American universities to discuss these subjects or even contract particular sessions. The individual treaty is always is confidential information.

Whatever more sensibilization exists on the possible conflicts, easier will be to surpass them.

In one first generation, the owners usually is the manager. In the second generation, the brothers know themselves well and trust the leader. In the third, some relatives work inside and others outside the company; in whichever of the cases, it is necessary to formalize the control systems. It would be necessary to set the functions of each meeting and who can be a good advisor or leader of a familiar assembly. The recommendable thing would be to convoke only to those who have critical spirit and suitable capacities. The main function of the meetings will be to add value to the company and benefit all the shareholders. We advised that the spouses of the owners are not eligible, unless they exert positions of high direction. The partners without qualification would agree that they were represented by independent advisors.

One of the frequent mistakes arises when lawyers or CPA of the company participate in the functions of the advice. In my opinion, a conflict of interests exists and they could only precisely be there and explain their reports. The work of the advisor is to value his work. The same happens with the high directors of the company. If the organ mission is to control the management, they cannot be examined themselves. Similarly happens to the friends or relatives by consanguinity, the businesses must be govern by professionalism criteria. Also, it is necessary to establish a daily routine and to destine more time to inform.

By consequence, the main challenge of any familiar company is to obtain a generalized relief that contributes improvements to the direction and to the government. The great problem is that certain industrialists do not distinguish both facets, are used to act in a personal way. Its enterprising vision, fundamental to grow, enters in conflict with financial aspects and interest created. They do not admit that their heirs at some future date will have to take decisions like partners with obligations and rights.

The lack of formation and the fear to the change prevent a correct delegation of functions to be centered in the common interests of all. The evolution emerges after an ordered planning. According to the dictionary of the Real Academy, reform means "what it sets out or it executes to innovate or to improve something". This implies a constant alert and a permanent monitoring, because by "leader between the leaders" who is it, if time is not dedicated to motivate to all the implied members, in a long term the destiny plays bad. Said the saying, each one reflects on whom they are its successors and acts in consequence. The hour of the truth arrives when the patriarch dies; then, the system based on the imposition becomes "until the law separates to us".

In Aragón & Aragón we are aware of the needs in this subject and in the of the family business environment, we are prepare to provide you our support and advisory, contact us.