01/05/2014
In the first dialogue session:
Governance option of family businesses to ensure the continuity and consolidation of Principles of Transparency and Integrity
The first dialogue session < < forum governance in family business ... the challenges of continuing generations > > which was organized by the Chamber and the Institute of Directors in GCC confirmed yesterday morning on continuing corporate governance, as it establishes the principles of integrity, transparency and justice, supports the option to separate the management of the property in the family business. Participants noted at the hearing conducted by the Board President Abdullah Ali almajdouie from almajdouie Group relevance that elements outside of the family in the boards of Directors of the family business, and that each of these rules establishes the principles of transparency and mutual respect.
Almajdouie said that family businesses in Saudi Arabia was launched in the sixties and fifties, most companies currently managed by the second generation, so some differences, that family businesses in Saudi Arabia and in different European countries in terms of the large number of family members, so the issue of continuing the family business at stake, given the existence of differences. Almajdouie said that governance is a set of laws stresses principles of fairness, transparency and equity, have several applications, there are successful experiences we have to look out for, looking for success will succeed. The Director of finance and administration group Haji Hassan Al-aali Adel bin Haji Hassan said higher normal differences occur in the family business, family business up in time for the two options either continuation of company and family disintegration, dissolution of the company and the survival of the family, so we have to consider the idea of dismantling some of the family business to the success of the family, perhaps nascent businesses of parent company better and more tender.
Invited to a working system provides the opportunity for Board membership to people outside the family, or give the company to executive body from outside the family, to keep companies, although there are conflicting differences. Said CEO ' PricewaterhouseCoopers ' Allam algoisi of the need to prepare the next generation to take responsible positions in the company, provided they qualify, that the separation between ownership and management, said that some differences in family companies is not necessarily true, there may be emotional, but if there is transparency and dialogue between all those problems are solved, and the company remains in tender either Badr Kanu (Board member of Yousef Bin Ahmed Kanoo group) stressed the staff treatment a general framework for resolving differences, especially if a family interest, openness and new Member of the company must be effective to take place in the company. In conclusion, Chamber Board Member AbdulHakim Ammar, , honored the speakers at the meeting.
