DUBAI: The Dubai Centre for Family Businesses, which operates under the Dubai Chambers umbrella, has released a ‘Sample Article of Association for Family Businesses’ to outline effective management and governance procedures, as well as corporate best practices, in a bid to promote growth and continuity among family businesses in the Emirate of Dubai.
The Sample Article of Association for Family Businesses can be used as a starting point for families who wish to draft a new Article of Association for Family Businesses or revive their existing ones to align with the family business vision and incorporate sections of the family constitution into the Sample Article of Association for Family Businesses.
Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said, ‘The Dubai Centre for Family Businesses continues to enhance its efforts and services, striving to achieve its strategic goals, 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 ‘Sample 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 risks associated with disputes, while ensuring business continuity, in line with the long-term vision for both families and companies, and with the specific needs of each company.
The Article of Association takes into account the requirements and conditions of family businesses that are registered as limited liability companies (LLCs).
Family businesses make up around 90% of the total number of private companies in the UAE, contributing significantly to Dubai’s non-oil GDP, in addition to employing a large number of workers in the country.
Most family businesses in Dubai are 55 to 70 years old, founded in the 1950s and 1960s. The majority of these companies are expected to undergo a smooth generational transition in the next five to 10 years.
The Dubai Centre
for Family Businesses was launched under the Dubai Chambers umbrella in May 2023 to ensure the sustainability and growth of family businesses in the emirate, all the while developing this vital sector and enhancing its economic contribution, in line with Dubai’s future development plans.
Source: Emirates News Agency
