Al Dhabi Capital: corporate governance of family businesses limits fragmentation

Mohammed Ali Yassin, Chief Strategy Officer of Al Dhabi Capital Limited, confirmed in an interview with Al Arabiya that the Family Business Governance Law in Abu Dhabi limits the disintegration of this type of society.

Yassin stressed the importance of this step in protecting companies, many of which had already suffered damage over successive generations of business management.

He said the law is an optional regulatory law that comes to protect family businesses and the new law aims to develop and strengthen the legislative framework that regulates the work of family businesses and to ensure that they rely on a more flexible and sustainable business model in compliance with the best practices of global governance, valuing the contribution of family businesses to the diversification and growth of the emirate’s economy.

He believed that the most relevant feature of this law is that of giving the founders of the family company the power to prohibit the sale of shares or shares to any natural or legal person extraneous to the family and to issue shares or own shares with double vote, with the requirement of approval by all shareholders before any shareholder disposes of his share or sells his shares. For a person outside the family.

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