Jordan: Developing a Model for the Governance of Arab Family Companies and Their Legislation

The current research aimed to developing a model for the governance of Arab family companies and their legislation, which contributes to the interconnection between the vision and the structures of supervision and control, and reduces the conflict and duplication of decision and performance. This is an attempt to address the Problem faced by Arab family companies, namely the ambiguity of roles overlapping tasks, lack of discipline and reflection of family problems on the performance and growth of the company due to the absence of a structure for the governance of these companies. The research used survey methods, and literature review and then the development of indications and opinions and make comparisons and simulations, in order to extract indicators and evidence from them. The research concluded with the development of a model of corporate governance that seeks to unify the components of the various models and their indicators within a single model to avoid defects in these models and gain their advantages and make all practices understandable, easy to implement and review. The research presented a set of recommendation as follows: Testing the model developed in this research and to show its strengths against its weaknesses in preparation for its adoption in the governance of Arab family companies. The need for intensive education on the importance of corporate governance and its necessities. This can be achieved through workshops and seminars. The legal legislator has expanded on the issue of corporate governance and mechanisms for following up on its implementation, and for the urgent need for expansion and clarification. Increasing the financial, moral, and technical support of family companies to ensure their survival continuity and success in supporting the national economy on the one hand and encouraging the establishment of more of these companies on the other. Proposing a course to in universities for the bachelor's and graduate studies entitled "Management of family companies and their governance". Adding an explicit statement on the characteristics of the senior administration and its traits that senior administration has the ability to translate the strategic direction of the company to the actual actions and tangible results, and to mention a text in the Jordanian companies’ law on leadership and creativity.