30/04/2014
Elite group of speakers discuss "the challenges of continuing generations"
Minister of Trade and Industry sponsors Thursday in the Eastern Chamber the governance in family businesses Forum
two dialogue sessions offers a pioneering experience and examines the consequences of a questionnaire conducted in 28 countries around the world
Under the patronage of the Minister of industry and Commerce Dr. Tawfig Alrabiah Thursday 1 may 2014 ' governance in family business 2014 challenges down the generations Forum ', organized by the Chamber and the Institute of Directors in the GCC countries, with the participation of experts, specialists and interested Arab local and international. The program of the Forum, which begins at 8 am at the sessions of the dialogue, the first topic (transition of the family business to the next generation, the challenges and possible solutions), while looking at the second theme (family governance implementation constraints), plus the experience of global company to continue and expand, as well as the transfer questionnaire results were conducted in 28 countries around the world.
Governance and succession of generations
the Chamber's Chairman Abdulrahman bin Saleh Al-otaishan said the importance of this forum which deals with a vital subject as local family business in Saudi Arabia occupies a wide area of the national economy, private sector activity, in particular, the volume of investments in the local market within 350 billion, more than the 12 of GDP, these investments are expected to increase by 4 in the next year, making it an important channel for attracting domestic and foreign investment, attracting labor force, national Specifically, thus reinforcing its position in the national economy.
Otaishan noted the importance of the family business not only in the local context, even in regional and global companies run by families in Gulf Cooperation Council countries, constitute 75% of the private economy, and 70% employs of the workforce in the region, and that 90% of North American companies are family firms, and that approximately 35% of Fortune 500 companies are family firms, in fact, but that family businesses in the United States representing 60% of the Employment, and 50% of GDP, and 78% of the generator of new jobs.
Otaishan said that the Forum seeks to reach additional recommendations, if activated the continuity of family companies facing the risk of downtime due to successive generations, so that the participants in the Forum under the theme 'challenges of continuity of generations ' will be looking at the first issue (transfer family business to the next generation. the challenges and possible solutions), the succession of different generations sometimes leads to disputes within the family around, talking about the number of experts and specialists, Some of them are family firms known them just Haji Hassan (Manager of finance and administration group Haji Hassan), Badr Cano (Board member of Yousef Bin Ahmed Kanoo group), and Steve Drake (partner in PricewaterhouseCoopers), and is moderated on this axis Abdullah Ali almajdouie.
Otaishan said that the discussion continues in the second session dealing with (the obstacles to application of governance in family business) where he talks about this axis of Ziad khoshim (partner in Allen and Avery, khoshim law firm), and Fawaz Al-khodari (Executive Chairman Abdullah bin Abdulmohsen Al-khodary), Ghassan (Deputy Chairman of the Board of Directors, Naqel), and Michael morkos (partner in haidrbek & stragls) in a session moderated by Dr. Jassim Al romaihi (Razin knowledge Holdings).
Successful experience of corporate governance forum is ' an experience of total transfer of the Kingdom of Jordan in the institutionalization of the family business, resulting in its transition from a local to a global group of companies. at the Forum, Deputy Chairman, Ghassan nuqul group speaking which addresses a number of important issues in the process of continuing the family business, in the light of the experience of the group which was founded in 1952 in Jordan as a family trading company, while more than 30 companies, and up to 45 markets in the world. And transfer of basic subjects belonging to the family business, given that only 30 of these companies in the world to continue its work until the second generation, and 20 for third generation, and 3 only last until the fourth generation and beyond, light touches to the actions taken by the group to grow and develop and move from frame to frame the regional and global levels, with continued here as a family company. The Group also provides the transfer of experience in the creation of a separate Department of the Royal family, the creation of a separate financial system entirely on the financial affairs of the family, and how the Group define a clear strategy for future investments.
GlobalSurvey
the displays Forum ' key results of the survey of the views of the family business in the Middle East ', in a working paper entitled ' the challenges of balancing data and family relations ', prepared by the firm PricewaterhouseCoopers for the family business, where the company held about 1952 interview in 28 countries, from Asia, Europe and Latin America, the Middle East and North Africa. The display offers Middle East area manager for entrepreneurial projects and clients in the private sector the company Amin Nasser, and deals with the experience of a family business in the Middle East, launched by entrepreneurs before 50 or 60 years and over those years has succeeded in diversifying its investments and the establishment of a number of successful trade blocs.
And to address a number of topics important to the companies that constitute the challenges these companies are hiring skilled labor (labor shortages), corporate restructurings, cash flows (cost control), in addition to market conditions, competition, etc.. Nasir reviews the steps expected of successful families to face challenges 'such as separate topics on subjects of property, good mechanism for corporate governance, and accountability and reporting to the Board of the holding company and the shareholders, communications with shareholders, and for the family. It also addresses the idea of a Constitution or rules for family based on what is good for the family company, also good for the individual, the rules cover family share ownership and the structure of the holding company, talks about the challenge of funding, and the companies choice to meet this challenge.
