01/05/2014
In the second dialogue session: the creation of a basic system determines the relations within the framework of the family
Alkhodhary: governance regulates large entities and facing risks, the separation of ownership from management has become a necessity
Khchim: confusion between ownership and management and implementation affect the level of companies and saved by family constitution
The second session of the Forum discussed governance in family business which was held today in the East Chamber ' obstacles to the implementation of corporate governance in the companies ' participation in dialogues both Ziad khoshim (in Allen and Avery, khoshim law firm), and Fawaz Al-khodari (CEO of the sons of Abdullah bin Abdulmohsen Al-khodari), Ghassan (Deputy Chairman of the Board of Directors, group), Michael Marcus (partner in haidrik & stragls). Dr. Jassim Al-rumaihi steered on Ghassan dialogue he said that transfer until governance in family firms need to board a large number of independent and clear relationship between family members, to apply company principles of transparency, accountability, have a clear vision of the future, and that there are professional rules of conduct, there are daily reports, and engaging in strategic decisions and the family companies need to approach governance.
As Fawaz Al-khodari reaffirmed the importance of governance, in the event of a company founder, the limited scope of work everything is however, founder, but when expanding business risks and be at risk of extinction here must be special and corporate governance policies governing entity, it is necessary to separate ownership from management, and attract other skills from outside the family. As Ziad khoshim may explain the positive results of the family company to the contribution, including the ability to access the capital market. And so it is necessary to differentiate between the three terms: ownership, management, implementation, ownership gives the right to vote within the company, and are determined by their owners, while management determines what company, what aims, implementation determines how to access it, warning the three mixing terminology, noting that bypass the confusion if a Constitution for the family, in terms of binding.
Michael morkos said that a basic contract between family members is the first step to achieving governance in family business; they are a starting point for already follows, starting from the individual company, closed joint-stock company, a public shareholding company, adding that it means many governance concepts highlighted transparency and justice. In conclusion, Al-rumaihi honored the speakers at the meeting; the Assistant Secretary-General for the Chamber's Economic Affairs Alsormi also honored Al rumaihi.
