THE BOARD CHARTER FOR SMEs & FAMILY BUSINESSES
Emirates CoreNiche Consultancy “ECNC” has made its endeavors to prepare its first Family Businesses/SMEs tailored corporate governance practical document called “Board Charter”. This is based on various governance rules, commands & directions that were revised, developed and updated by EU, UK and IFC during the past few years following the financial crises. This charter will create governance shield that suits the nature and requirements of SMEs and Family Businesses in order to guarantee success & growth away from risks, fraud or failure. Corporate governance is not only a group of rules to be implemented by a company, but it is a culture to be sourced out of the company. It represents a methodology to discipline the relationship between owners, board members, employees and other stakeholders of a company.
Some of the important advantages of implementing governance rules are:
1. To protect the rights of owners, employees, customers, creditors, suppliers, local authorities and the society as a whole.
2. To improve the company’s performance, support internal control and achieve sustainability.
3. The advantage of securing the necessary financing at preferential rates to reduce cost.
4. To limit the effect of risks and negative exposure to financial crisis.
5. To prevent fraud and avoid corruption.
6. Establishment of transparency environment when performing businesses with various stakeholders.
This charter will offer great assistance to many SME’s and Family Businesses in order to implement principles that suit its nature and requirements to build governance framework that would lead to growth and reduce risks and corruption.
“ECNC” will continue its endeavors to produce SMEs & Family Businesses suitable governance documents of which “Code of Ethics” would be ready by the end of the second quarter of 2017.
“ECNC” will also issue a complete module that shall explain how to run a successful organic "Board Evaluation" which would is expected to be ready for clients during the second half of 2017.