Nebras Al-Qaim Law Firm and Legal Consultants.

Family businesses began with the emergence of the Kingdom of Saudi Arabia during the reign of King Abdulaziz bin Abdulrahman Al Saud (may God rest his soul) and did not exist before that, as the stability of governance and the emergence of state institutions helped to encourage merchants to establish their companies, and family businesses played a very important role in the economy The kingdom.

Family businesses in numbers:

98% of Gulf companies are family businesses.
250 billion riyals is the size of family business investments in Saudi Arabia alone.
22% – 30% share of family firms in the GDP.
45 family businesses are among the top 100 companies in Saudi Arabia, with revenues exceeding 120 billion riyals in 2013 and employing 200,000 people.
Definition of family business:

It is a sole proprietorship or a company that is wholly owned by one family, or the voting power in the Board of Directors is under the control of one family. Family businesses often start with a sole proprietorship and then evolve into various forms of companies.

Development:

The first generation (founder – family businesses start their life through an enterprising and ambitious person who establishes and manages the company and works on its expansion and spread, and his family may share his work with him in managing it)
The second generation (this stage begins when the founder dies or becomes incapacitated, or is forced to relinquish his administrative powers to the second person in the family, usually they are the children or the wife who replace the founder in the administration)
The third generation (manifestations of family disagreement over the management of the company start from the second generation, and these disputes develop into the third generation in which the severity of family problems increase the management of the company)

Judicial liquidation: It is the liquidation of the company by the judiciary according to the reasons for liquidation in the event that the partners refuse consensual liquidation, or as the companies’ voluntary liquidation system called it in Article (205). We find that the liquidation takes place in the event of the expiration of the term of the company according to Article (203) two hundred and three in the event that all or some of the partners refuse to continue in the company, or in the event that the company achieves losses amounting to (50%) fifty percent of the capital and the partners refuse to continue them according to Article (180) one hundred and eighty of the system or as decided by the judiciary that one of the legitimate reasons justifying the dissolution of the partnership is the existence of an entrenched misunderstanding between the partners that makes cooperation between them impossible, which leads the court to the liquidation decision. In the event that the company does not have residual properties and does not have obligations or employees, then it is not required to appoint a liquidator or carry out liquidation acts, then the court shall rule that the company has been liquidated between the two parties. But if the company has what needs to be liquidated in terms of mutual assets or liabilities, then it appoints a liquidator, and his hand on the company is a trust to finish the work entrusted to it, which we mentioned in the previous article (consensual liquidation) and whose actions are specified in Chapter Ten of the Companies Law. In the event that the business of the liquidator ends, the profits or losses shall be divided equally among the partners according to the shares, unless the company’s articles of incorporation stipulate otherwise. The competent court in liquidation shall be loyal to the Board of Grievances pursuant to Cabinet Decisions No. (241) dated 10/26/1407 AH and No. (261) dated 11/17/1423 AH,

The hotel and the furnished apartments do not have the right to photocopy your identity or the family book.
Rather, he is entitled to record data only