Sponsored by the chairman of the Financial Market Committee
the East Chamber Launches at its headquarters, on Wednesday, March 30,
2016 AD, in cooperation with the Saudi Stock Exchange (Tadawul), and under the
care of His Excellency the Chairman of the finincial market
committee council Mohammed bin Abdullah Al Jadaan, the forum of
turning family business into a joint stock, in order to review the role of
transformation in keeping the continuity of the family business and to
secure their growth and development, especially under the current
economic challenges.
Discusses specialists and academics within the forum participants, several axes
meet all aspects of the transition from a family company to go public, and
governance of the family business.
specialists and academic participating in the "Forum of
turning family business into a joint stock companies" which is
organized by the East Chamber in cooperation with the Saudi Stock
Exchange companies (Tadawul) discussing with His Excellency the chairman of the
Council of the Capital Market Committee Mohammed bin Abdullah Al Jadaan
on the end of March 2016 regarding family status and future of the companies,
under the growing need for them to be converted into joint stock companies,
doing the utter best to keep them and their achievements.
Explained the chairman of the Council of East Chamber Abdulrahman bin Saleh Al
ataishan, who added that the forum aims to review the role of turning companies
from a family to contribute to maintaining the continuity and sustainability of
their success and their growth and development, and the role of this shift in
granting the companies the necessary ability in the face of current economic
challenges.
According to this, Al ataishan said that the discussions forum in which the
number of specialists and academics involved will be discussing several
subjects, most notably how to shift from a family company to a public
shareholding, governance and family businesses, in addition, the display of
some of the experiences of family companies in the transition to joint-stock
enterprises, and the most important steps they have taken in this aspect and
the main benefits of this transformation.
Al ataishan pointed that the organization of the forum comes out of
the chamber and Saudi Stock Exchange (Tadawul) interest in family businesses
sector and highlighting the most important practices in the transition to a
contribution, to convey a clear message to companies wishing to switch to save
their business from collapse and to help them develop and expand in the future.
Al ataishan paid the attention that the importance of the forum
lies in dealing with a vital issue at the local scale since the family
companies in the Kingdom occupies a large extent of the national
economy, they are an important channel to attract local and foreign investments,
and to attract, national workforce in particular, which enhances its position
in the national
economy.
The amount of its investments in the domestic market exceeded the limits of 350
billion riyals, or more than 12% of GDP, and is expected that these investments
increase 4% in the next year, making it an important channel for attracting
domestic and foreign investment, and attract, both national workforce in
particular, and thus reinforces its position in the national economy.
The organization of the forum comes from the concern of the room and ( Tadawul)
regarding the family business sector and highlight the most important practices
in the transition to a contribution, to convey a clear message to companies
wishing to switch to save their business from collapse and to help them develop
and expand in the
future.
Ataishan noted that the forum conveys an awareness message to
entrepreneurs and owners of family businesses of the importance of the
application of transformation rules and procedures of governance and to clarify
the ways and means to shift and look at past experiences and family of listed
companies, as well as make them aware of the challenges they may face in the near
future.
Forum sessions
For his part, Secretary General of the East Room Abdulrahman bin Abdullah Al
wabel said in his speech about the scientific program of the forum that the
first session, which is held at 9:30 am until 10:45 am, deals with the
experience of family businesses, and managed by the Chairman of Saudi Telecom
Company, Dr. Abdullah Al abdulkadir, several themes, namely: the stages of
transformation, the challenges facing the joint-stock companies, the advantages
of listing, with a number of tips and recommendations, which are in the same
direction.
during the meeting speaks the exclusive manager of Halawni bros, in favor
of doubles, and Director Manager of Mwasah for medical services Mohammed Al
saleem, the Executive Director of Al uthaim markets, Yusuf
Alagafari , Executive Director of Al-Andalus Real Estate, Ayman Almdefer.
the second session, which is held at 10:45 am until 12:00 and titled, How to
switch from a family company to public stock, and is managed by the Secretary
General of the Committee of media and banking awareness in Saudi banks,
Talaat Hafez, reviewing a number of different themes, as a market of Saudi
listing, the advantages and the challenges of listing, and financial services
market, where primary markets director at the capital market
committee (Tadawul), Nayef Al-Athel speaks.And the manager of the private
stocks speaks of the feasibility of investment, AmrAl jalal, about the
main stages and the company's management commitment to it, and the
success factors in addition to some of the important considerations in
this regard.
And reviews in the same meeting, the head of corporate finance at the company,
Falcom for Financial Services, Maath Al-Khasawneh, the stage of the listing,
and that by explaining the listed company already, and lessons learned from its
experience, as well as some of the important considerations in this regard.
The session concludes with a speech by listing unit director of industry and
services in the Capital Market Authority, Wisam AlFreihi, about the role of the
committee in the listing process, and disclosure and transparency.
In the third and final meeting which is going to be held at 13:00 am until
14:00 and titled, governance and family businesses, managed by head of
Joatha center consultant for business development, dr. Ihsan Bu Hlika, where
the expert explains about family businesses, dr. Sami Al Wahaibi, from King
Fahd University of Petroleum and Minerals, the affect of the application of
governance on family joint-stock companies, and the advantages and challenges
after the application of corporate governance, as well as discussing some of
the advices in this regard. Legal Adviser Salman Muteb Al Sudairy in Salman
Al-Sudairi Law Firm also speaks about the transformation requirements of public
contribution, and legal obligations between private and public companies, and
finally, Ahmed Aelkezlan, director of corporate management in the Capital
Market Authority presents the most important rules of corporate governance and
the impact of disclosure and transparency.
This, through the Forum program, some speeches are given by the organizers
of the event, where the chairman of the East chamber Abdulrahman bin Saleh
Ataishan will deliver a word about the importance of the transformation of
family businesses and how positive it is to the company itself and
economic community in the Kingdom as a whole, also a word by Mr. Khalid
Bin Ibrahim Al-Rabiaah from Capital Market Company ( Tadawul), and the word of
His Excellency the chairman of the Capital market Authority, Mohammed bin
Abdullah Al Jadaan.
The East chamber holds lectures and seminars that discuss the family business
sector in the region continuously and hosts officials and specialists and also
known counseling offices to offer experience, advice and guidance, also the
chamber hosts within free consulting program, the oldest and most important international
consulting offices to provide free service for those interested in the
transformation Acquired a Distinctive Attendance in the Eastern Region Business
Sector.
Family Bulletin presents a specialist model and the most important achievements
of the family sector companies in the world.
East Chamber is Keen through the family business bulletin that is issued
by the Information Department to discuss the most important details of the
sector of family companies in the region, and the transfer of the most
important international experiences.
the bulletin is Keen on the transfer of major involved news in the family
business sector, and the contributions of those trusted to study of the sector,
also it publishes the initiatives, meetings and seminars with professionals and
academics who provide solutions for owners of family businesses and tips and
advice about the possibility of transferring and arranging the
family business house from the inside, to ensure achieving profits and
permanence .
The bulletin, which the chamber has allocated a dedicated a varied team
among journalism, research and studies to it, has dedicated many pages
that deal with the most important meetings and forums that review
the family business sector through a space includes news, dialogue, and Arab
and international experiences, and also studies concerned with detailed things
about the transformation of companies and what is wanted from them.
Bulletin also deals with the experts and experienced, whether academics or the
most prominent business houses, who have given a role model in this field
in order to ensure the transfer of information and interest that may be needed
by the reader of this specialized newsletter.
And family Bulletin has acquired a distinctive presence for the business
sector who are interested in the topics presented and the talk
shows and meetings that have formed a conviction to them about the importance
of transformation, where some began to preface the way for the transformation
procedures and arranging the trading house, and dealing with the specialized
consulting offices in this field.Businessmen: transferring helps to
develop the business and the protection of sons and fortune
Businessmen spoke about the importance of turning companies to stock in the
expansion of business, and protecting them of the international changes that
impose this transferring, and they said during press interviews published
in "Familial" bulletin issued by the chamber that in addition to the
importance of the transferring in the continuation of the family company, that
it provides a protection for generations of the family of difference or
division, through putting an agreement of the company,
businessman Khalid Al Zamil Said : "Unity, and being careful to avoid the
controversy helped us to apply the procedures related to transferring ,our
achievements have become true by our unity and our meeting
together, and because we continued together, and our decisions were collective.
We have decided to turn into a joint stock company, and we were one of the
first companies that turned in this field, where some of our companies
turned to stock, and the decision came as part of our strategic
improvement, where we targeted managing our buisness in a modern
professional style. "Al Zamil stressed that the Zamil Al Zamil Group
has drafted a special agreement for the family thar aims to establish the
values of the existing institutional work on modern management concepts of, in
order to ensure the continuation of collective action, and ensure that the
ownership of the family members of stocks and not by shares.
For his part, businessman Abdullah ALmajdouie explained the importance of
the transfer, saying: we dealt with the subject in a scientific manner, as i
was keen at first to attend courses and workshops to explain the family
business, principles and standards, and because we had agreed that any
information is clear for all, the founder was keen to support this orientation,
and asked the need to subordinate the rest of the family members for such
courses that explain the governance mechanism, and that they have to
develop themselves and create themselves to work in a professional manner in
the company, thus the work will develop and expanding, and they must have the
ability to keep pace with this development.businessman Khaled Abdulkarim
stressed about the decision of transfering that regulations have differed
and became clear and supports the work of family businesses and also support
the transformation of any form of it was, as it offers solutions in case of any
problems appearing or complications that do not support the transition in
addition to that we have a board of directors that is supported by
consultants and experienced who give us advice to go on in our path, Add
to this that some foreign companies have become searching for contributing to
work with companies and that makes the one family businesses lose on of its
characteristic in the labor market.
For his part, businessman Mr. Salih Al Said said: We have already
begun the transition to a holding company, and in future steps we will continue
until we complete the transformation, and you can say that we see around us
successful companies that have been able to put business continuity strategy to
themselves after they have been governanced, and this is what
encouraged us to continue on this subject, in order to protect our
entity and protect our sons after us, and in return, what we are
witnessing of the collapse of some great entities, made us
think a thousand times in the future of our sons,from here we are keen to
show some of the experiences of successful companies that separated the
property from the board of Directors, as it separated Council from the
rest of the family, to make it easier to us to explain the governance
mechanism, and our sons then should develop themselves and prepare
themselves to work in a professional manner in the company, where
the work will develop and is expand, and we must have the
ability to keep pace with this development.
the Jordanian businessman Ghassan Nakul, stressed that the issue of governance
is very important for family businesses, for many obvious reasons, first and
foremost ensure the continuity of the company and its transition between
generations, in addition to being a guarantee for the company's improvement and
growth and having a real progress.
As about what is in the group, we will go ahead with the institutionalization
and governance and the completion of a the project of separation of management
from property in all its aspects and consequences, believing that faith in the
importance of governance as an essential to guarantee family company growth, survival
and progress, without a doubt is the motivation behind this orientation.
