I attended a presentation on corporate governance organized by the Investment Companies Union in Kuwait. For those of you involved in a family business or any business for that matter and interested in learning more about corporate governance, there is an excellent resource in the website of Dubai’s Hawkamah, the Institute for Corporate Governance (makhalaw shai dubai!).
As I mentioned earlier a friend was frustrated with his family business. He thought implementing proper governance would diminish the power and control of the family leader and hence there will be opposition to it. But research shows that family businesses have very slim chance of surviving beyond the third generation, and most end up in court! So it’s time to educate the family leader and all members of the importance of proper governance which is the best way to insure continuity into the future.