Dubai Center for Family Business publishes ‘sample article from the Association for Family Business’

He Dubai Center for Family Businessesthat operates under the Dubai Chambers Umbrella, has published a ‘Family Business Partnership Sample Article’ to outline effective management and governance procedures, as well as best corporate practices, in a bid to promote growth and continuity among family businesses in the Emirate of Dubai .

The family business article of association template can be used as a starting point for families wishing to draft a new family business article of association or revive existing ones to align with the family business vision and incorporate sections of the family constitution. in the Family Business Association Article Model.

His Excellency Mohammad Ali Rashed Lootah, Chairman and CEO of Dubai Chamberssaying:

“The Dubai Center for Family Businesses continues to enhance its efforts and services, striving to achieve its strategic objectives, ensure sustainable growth among family businesses in Dubai, enhance their contribution to the national economy and promote the adoption of governance and best practices” .

The ‘Model Article of Association for Family Businesses’ outlines a set of options for companies to update their article of association and assesses the role these contracts play in mitigating the risks associated with disputes, while ensuring continuity of the business, in line with the long-term vision. for both families and companies, and with the specific needs of each company. The statute takes into account the requirements and conditions of family businesses registered as limited liability companies (LLC).

Family businesses account for around 90% of the total number of private companies in the UAE and contribute significantly to Dubai’s non-oil GDP, as well as employing a large number of workers in the country. Most family businesses in Dubai are between 55 and 70 years old and were founded in the 1950s and 1960s. Most of these businesses are expected to undergo a smooth generational transition in the next five to ten years.

He Dubai Center for Family Businesses was thrown under the Dubai Chambers umbrella in May 2023 to ensure the sustainability and growth of family businesses in the emirate, while developing this vital sector and enhancing its economic contribution, in line with Dubai’s future development plans.

News source: Dubai Press Office