Family Businesses, Corporate Governance and the Portuguese SPQ

This paper identifies some alternatives that may be used in order to adapt the articles of association of the Portuguese Sociedade por Quotas SPQs to a family business. However, it also identifies corporate governance problems common to all incorporated family businesses. The paper is part of a wider research that aims to create a good- and bad practices manual for SME’s. The research group has send questionnaires to lawyers and business associations and organized a meeting in Coimbra to identify the main problems that family SPQs face in their legal environment. Portuguese Company Law doesn’t give special attention to family businesses. However, it has many rules that are not mandatory, and therefore the articles of association may be used as a tool to avoid future frequent problems in family businesses. The paper identifies many solutions for typical corporate governance problems in family businesses. It may be used as a manual of good practices for those who have to write the articles of association of a Portuguese SPQ. The paper may interest anyone who wishes to understand the problems that are common to all family companies.