A Lawyer calling for drafting a "charter" that reduces generational differences in family establishments
The founding partner of Naji Khiran Law Firm and Legal Consultants Dr. Alaa bin Abdul Hamid Naji stressed the importance of having a written "charter" in the family establishments, including general lines, that ensure sustainability of the activity in each facility. The Charter should be based on the local environment, guided by other experiences.
This came during a workshop organized by Asharqia Chamber in cooperation with the National Center for Family Establishments on Monday, 27 June 2022, entitled "The importance of the Family Charter in Family Establishments", which was moderated by the Chief Executive Officer of the National Center for Family Establishments, Naim bin Hathifa Al Sharab. Naji says that the importance of the family charter lies in the family company is the journey of formation, continuity, and context of work that has evolved day by day. Over time, relations in the facility vary, requiring that it have care and follow-up to ensure permanence. Therefore, the existence of the charter that ensures the continuity of family wealth requires the reduction of disputes related to this wealth.
During the workshop, a member of the Board of Directors of the National Center for Family Establishments, Abdullah bin Ali Al-Majdoui, added that family wealth or wealth managed by the company or the family establishment needed a family charter that was a fair distribution method, outlined the overall and broad management of this wealth and gave satisfactory attention to all family members. To preserve both wealth and family.
Naji continued by stating that the Charter was drafted through a specialist, taking into account the views of all parties in the family and others. It should include all definitions of the establishment, including the concept of the family and the determination of the property belonging to the establishment. It should specify the agreements announced, the methodology for the separation of administration and property, the mechanisms for the resolution of disputes, and the question of the care of the family and its members, especially from successive generations.
As to the criteria under which the proposed charter should proceed, he said that the most important criterion was to be derived from the enterprise's local environment, not from a replica of another establishment, or a thesis submitted by an advisory office from abroad. However, that does not mean not being guided and acquainted with others' experiences.
The workshop featured a detailed discussion on the issue of the Charter and a visual presentation on the National Centre for Family Establishments by the workshop's director, Mr. Naim Al-Sharab.
