RISKY BUSINESS: FAMILY BUSINESS SUCCESSION AND THE RULES OF PROFESSIONAL CONDUCT
By John W. Ambrecht, Esq.* and Elyce Pike, Ph.D.**
Ironically, the California Rules of Professional Conduct1 ("CRPC" or "Rules") actually tend to hinder rather than help the transfer of a family business from one generation to the next. This becomes apparent if you compare conduct under those Rules to the "best practices" developed by other professionals in the family business succession field. Of course, hindering rather than assisting the succession process is hardly the purpose of the Rules, but it is often the effect.
To frame this discussion we begin with the fact that Rule 1-100 (A) provides in part as follows: