Objective: This study aims to analyze the legal framework governing corporate governance in family-owned companies, using public shareholding companies as a practical model. It seeks to examine the extent to which family businesses can adopt sound governance mechanisms that enhance their sustainability and institutional integration within a rapidly changing economic environment. Methodology: The study adopts a descriptive-analytical approach by reviewing and analyzing the legal frameworks regulating the governance of public shareholding companies. It compares their institutional rules and mechanisms with the operational reality of family-owned companies, while taking into account legislative gaps arising from the specific nature of these entities. Findings: The study finds that the legal framework governing public shareholding companies provides an integrated system grounded in transparency, accountability, protection of shareholders’ rights, independence of management bodies, and mechanisms for preventing conflicts of interest. However, the practical implementation of these governance mechanisms in family-owned companies faces significant challenges due to the predominance of family ties and emotional considerations over institutional and legal principles. Conclusions: The study concludes that the existing legal framework is insufficient to address the specific challenges faced by family-owned companies, particularly with respect to intergenerational transfer of ownership and management, internal dispute resolution, and balancing family interests with those of the business entity. Recommendations: The study recommends the adoption of a dedicated legal framework for the governance of family-owned companies through the enactment of independent national legislation that accounts for their distinctive characteristics, aligns with modern international standards, and draws on successful comparative experiences. Such reform would enhance transparency, accountability, sustainability, and competitiveness.

Title

نعيم سلامة

Publisher

An-Najah National University

Publisher Country

Palestine

Indexing

Scopus

Impact Factor

0.0

Publication Type

Both (Printed and Online)

Volume

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Year

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Pages

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