Relative danger: Selling of shares is a common cause of disputes in family businesses, says CEO of Saudi Arabia’s NCFB

Relative danger: Selling of shares is a common cause of disputes in family businesses, says CEO of Saudi Arabia’s NCFB

In 2017, 538,000 businesses in Saudi Arabia were family owned, which was 63 percent of the total number, a study by the NCFB found.. Disputes arise between executives and the shareholders infringing on their' management powers.. " the disputes arise because there is no clear governance policy regulating the relationship between the owners and executive management.. Another cause of disputes is nepotism: The person in charge assigns power to a relative and not to the most qualified person.". It is imperative that a robust policy is in place.. A study by the center found that in 2017, 538,000 businesses in the Saudi Arabia were family owned, which was 63 percent of the total number.. "The NCFB aims to promote the importance of family businesses and help them apply the best governance standards," said Al-Ajlan.. The center is also creating programs that will to help to ease the transition when one generation takes over a business from another, achieve sustainability, and improve governance standards to ensure a family business survives and thrives in the long term.. Companies bet on AI to track social distancing, limit liability /node/1666086/business-economy.