Asharqia Chamber reviews the importance of the family charter in a "family" bulletin
The "Family" bulletin issued by Asharqia Chamber in its latest publication emphasized the importance of the family charter to ensure the achievement and success of governance in family businesses, and then sustainability across generations, as part of several topics that dealt with the most important challenges facing these companies.
The bulletin dealt with the subject of the family charter and its role in the management of family wealth, under the title (The Family Constitution First!), as the bulletin indicated that family wealth management involves differences in viewpoints that increase or decrease in intensity between family members depending on its subject matter, as it may lead to certain related events With the retirement or death of one of the founding members of the company, these viewpoints aggravate and diverge until they reach the intensity of conflicts, and then the chain of disintegration and collapse of the family company begins. Therefore, the solution to such disputes - according to the analysis - is the family charter that includes the organization of family ownership in the company, its governance, and management. The work policy, the policy of employing family members, the distribution of profits, the disposal of shares or stocks, and the mechanism for settling disputes or disputes.
The report issued by the bulletin also emphasized that the family charter does not disrupt business and does not strain the companies’ budget, and placed all of this under the title (misconceptions behind delaying institutional transformation). Relationships between family members and the company, in addition to mechanisms for resolving family disputes, methods for preparing future generations to manage the company, rules for employing family members, and the mechanism for establishing the Board of Directors and the Family Council.
Under this framework, and in a special dialogue for the bulletin with the certified consultant in the sustainability of family businesses, Eng. Tariq bin Hashim Al-Nabulsi emphasized that corporate governance in general is a system of rules and practices that determine how the company operates and how to align the interests of all its stakeholders. Good governance leads to good practices. An ethical business that contributes to the success and sustainability of the company in the long term, emphasizing the development of family businesses and the continuity of their business and preventing conflicts around them. A developed governance structure designed specifically for the family and the company.. calling for a family charter that includes the rights of current generations, and regulates the issue of succession and succession in the company
In a report entitled (On Smart Governance), the bulletin called for the use of artificial intelligence to implement the desired governance in family businesses, to ensure its continuity and sustainability, in several areas, including data analysis and identifying the suitable options to make informed decisions.
The issue included other topics, including "the risks of climate change and family businesses, and the transmission of management across generations, the most common and deadly dilemma in family businesses."
