Webinar promotes alternative dispute resolution to maintain the sustainability of family businesses

Webinar promotes alternative dispute resolution to maintain the sustainability of family businesses

Published Date: 31/05/2022

 

Alternative dispute resolution can maintain the sustainability of family businesses and enable them to face challenges that hinder their growth, as discussed in a webinar the Saudi Center for Commercial Arbitration organized in partnership with the National Center for Family Businesses.

 

The webinar, “Effective Alternatives to Settling Family Business Disputes: The Key to Sustainability,” featured SCCA Chairman Dr. Walid Bin Sulaiman Abanumay, SCCA CEO Dr. Hamed Bin Hassan Merah, NCFB Chairman Dr. Ghassan Bin Ahmed Alsulaiman, and NCFB Acting CEO Mr. Naeem Bin Hudhaifa Al-Sharab.

 

The webinar addressed the optimal mechanisms for resolving family business disputes that are also consistent with international standards and best practices. Consensual means of dispute resolution, such as mediation, have a key role in maintaining the continuity of contractual relationships, securing the future of family businesses, and safeguarding family relationships from disintegration due to business conflicts.

 

The webinar highlighted institutional services, such as the arbitration and mediation services offered by the Saudi Center for Commercial Arbitration, and the role they play in providing parties with a robust, effective operational framework. It ensures that disputes are resolved with fast, flexible procedures that preserve the parties’ privacy and allow them to select neutrals specializing in the appropriate field.

 

“The Saudi Center for Commercial Arbitration offers a variety of ADR services in accordance with international standards and best practices to meet the needs of all types and sizes of businesses,” Dr. Abanumay said during the seminar. “The inclusion of a dispute resolution clause consistent with the nature of a commercial contract enables family businesses to settle their disputes with ease and comfort.”

 

Dr. Alsulaiman said that sustainability is one of the greatest challenges facing family businesses, and governance a tool for improving the sustainability of family businesses, along with having a qualified generation capable of taking over leadership in the transition from one generation to another.

 

Dr. Merah said that consensual means of dispute resolution, such as mediation, are distinct from other ADR services because they rely on agreement between the parties and preserve the continuity of the contractual relationship. Consensual methods are the best choice for family companies because they play a role in maintaining business continuity and safeguarding family relationships from ruptures. This means that a business dispute is merely a stop for a family business, not a setback.

 

Mr. Al-Sharab said: “We are pleased to partner with the Saudi Center for Commercial Arbitration to support family companies in overcoming one of the most important causes of disintegration, namely family disputes. It is a pressing matter to include a mediation or arbitration clause in the articles of incorporation and the family charter to guard against the collapse of the company.