Guiding Force Family Businesses Addresses Mustafa Hussein, a lawyer in the wealth management group company “Taylor Lessing,” the British author of “laissez-passer family companies” discussed the role and responsibilities of managers in family businesses in the Middle East.
“Blood for water not become” Perhaps these words represent one of the greatest agreed global realities. The argument applies in particular to the Middle East, where the family represents the nucleus of society. Family business model allows its members to use this as a source of strong family ties of loyalty, commitment and motivation for the development of The Rubix Project Review company. It is therefore not surprising that family companies represent some of the most successful institutions in the region (and in the global market).
So why the existence of a policy of corporate governance?
Effective regulation is indispensable to ensure the sustainability and profitability of family businesses, which the owners always Ihtmaly to make sure that their companies’ corporate governance systems characterized by comprehensiveness and strength. Blood ties may represent a point of excellence for the family business, but at the same time show some weaknesses as well. There may be some sensitivities about succession in executive positions and the role of family members in the company and use the company’s assets or misuse of this on without limitation. Without a regulatory framework and the outline of the work, these sensitivities may become loopholes and weaknesses true for the company.
Owners can show their commitment to high standards of corporate governance by using, for example, the policy of corporate governance provides for the concept, objectives and details of how to follow the company and holders of its shares and its officials and their Tesler Trading Co application of best practices. Can this policy stipulates how the family business without interference from the owners, but through strategic control, and this is what helps the owners to determine how they should be managed by the company.
Narrowing the gap between owners and managers
If the ties of blood and one of the driving forces behind the family and the basis of ownership of companies, but it is a strategic point of presumed (or should) be a board of directors is of the direct control operations It can support the Tesler Trading company‘s corporate governance policy through delegation of authority and powers of the Data Committee. These solutions help to narrow the gap between the expectations of the owner and detailed instructions, which can be for managers through which the company’s management as the governing body, but within the limits set by the owners.
Once the codification and documentation of the relationship between ownership and operations, will become the company’s directors about how your generosity carrying out their duties and authority, and they will realize that the company’s management, taking into account the moral and strategic aspects with a focus on performance and value creation and accountability. To avoid any doubt or frustration on the part of the owners, the Board of Directors will recognize as well that is expected to provide high quality information on a regular basis to the owners taking care of an effective decision-making processes.
The role of managers
The managers in the use of their skills, experience and knowledge, and independence of the role for the development of the strategy and guide the family company’s performance. There must be support based on mutual respect and open communication between the family and the members of the Board of Directors of the outside and between executives and non-executive relationship. The executives in the company’s strategic tasks, but at the same time occupy managerial positions (such as the Executive Director). The non-executive directors do not have them in management positions in the company and executive functions as well, they are independent members asking them to join the board of directors due to their experience. In the case of a person (such as a large family) is given as a member of the board of directors but has influence over some or all of the members of the Board in addition to compliance with the other members of the council to guidance, then this person is a “shadow director“. There are no substantial differences between assigned to the different types of managers responsibilities but there is the difficulty associated with the directors of the shade is in the presence of someone who has the powers and responsibilities to operate without official position.