01/05/2014
At the opening forum of corporate governance in family businesses
Minister of Commerce announces the implementation of the Charter of the pilot project for family businesses
Family businesses face challenges that may impair its future
The Minister of Commerce and industry Dr. Tawfig Alrabiah , the Ministry under its commitment to the support and development of family businesses had prepared a draft Charter pilot for family businesses to a framework for instilling behavioral norms, said Alrabiah speaking on behalf of the Undersecretary of the Ministry of trade and industry for internal trade Abdullah bin Raja to the governance of family businesses Forum organized by the Chamber in cooperation with the Gulf Institute of Directors Thursday 2 May 2014 to the Ministry and to maintain corporate and family foundations as Monument of national economy, had made it easier to shift < < family firms into shareholding companies closed, including abolishing controls transformation into joint stock companies. And encourage the Chambers of Commerce and industry to organize forums and workshops to discuss ways of supporting family businesses, and solve their problems through the establishment of national centers for the family business in that Chamber.
Al-rabeeah spoke about the Forum organized by the Chamber and the Institute of Directors in the Gulf Cooperation Council yesterday (Thursday 1/may/2014) said: < < this forum comes at a time when we desperately need to review many procedures and regulations and various economic challenges, and to diversify the economy, and strengthen corporate governance to support sustainable development > >. He and < < owing to the family business of great importance in the national economy, the continuity and the development and expansion of the most important aspects that require us to strengthen work to address all the challenges and risks faced, so this important forum to discuss and find appropriate solutions for these companies to achieve continuity and survival as a tributary streams of the national economy.
And he < < despite dramatic social and economic role played by these companies, but they have a lot of challenges which may affect its future, as a result of the different owners of family businesses > >. Explaining that < < is one of the most important means of maintaining family entities developed a charter agreed by all parties to ensure that the company's transition to successive generations of those families smoothly while maintaining respect and appreciation between the partners, by the division of roles within the company, the methods and legal and administrative practices to ensure continuity and avoid a rift that could lead to its collapse as well as the separation of ownership from management company in its various forms, transform family businesses into shareholding companies, which facilitates distribution partners stock > >. Turning to the subject of governance in family business and its impact on the companies, saying that corporate governance < < is an integrated system of financial and non-financial oversight, how is corporate governance and control in accordance with a specific structure and ensures the distribution of rights and obligations among the participants in the management of the company, as the Board of Directors and managers Executives and shareholders > >. Said the Chamber's Chairman Abdulrahman bin Saleh Al-otaishan that the meeting be held in the shadow of a growing conviction among business owners of family firms of the importance of their transformation into joint stock companies, it also comes with extended conversations about the importance of applying the governance standards and concepts. Explaining that the Forum should focus on implementation of corporate governance in family business, based on the strategic importance of these companies in the GCC countries, where more than 65 posts in the GCC countries, especially in the sector of small and medium-sized companies, as reflected in the light of the figures and statistics confirming the ownership of the family companies between 85 and 90 of private sector companies in the GCC, they possess many economic activities, hence, the need to develop our engagement with this Companies, provide them with the best opportunities to contribute to the process of economic growth and development.
As Chairman of the Institute of Directors GCC engineer Mutlaq Al-morished spoke about the Institute of Directors, objectives and activities, he said that the Institute was established by a number of large companies, aimed at improving governance and transparency by GCC, for we see that some financial statements announced by some companies almost incomplete, we strive to be more transparent, and the Institute for organizing specialized training courses offered by the Institute for companies according to needs of the company. Al-morished, predicted that the year 2017 major breakthrough in the field of transparency in the GCC countries, where large companies will not offer financial lists incomplete, or imperfect. He said that the Institute is not profitable, but the Foundation seeks to support and promote the principles of transparency and corporate governance. In conclusion, Al-Aqeel honored the Forum sponsors and speakers.
