Sunday, March 25, 2007

Corporate Governance

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.

5 comments:

1001 Nights said...

I was asked if I wanted to go at work but declined. How was the conference itself?

I don't know if you've noticed this trend as well regarding family businesses but what I notice are rifts being created specifically between fathers and their sons. The father creates and even grows the business but after 30 years of experience he finds himself irrelevant and completely lost when it comes to some of the newer business practices. In the meantime the sons make it a point to take control away from their father and have the main objective of actually exceeding their fathers’ achievements and success. I get the sense that there’s this sort of father-son competitiveness factor playing a role here.

bu ziyad said...

The conference was ok there were two speakers.. informative overall.

What you mentioned is one form of family rivalary between father and son.. it could get more complicated the bigger the family and the more generations it spans..

Happy Wolf said...

the only property i inherited from my father is my bald head.. so i will not have to worry...

bu ziyad said...

happy wolf: either way you get a bald head :p

yas said...

What is they say about family and wealth...yes it's "Rags to rags in three generations" We're the unlucky lot who came out 3'rd!