How should Cambodian youths prepare to avoid conflicts of interest in business?
A business with many shareholders often encounters many problems and conflicts of interest because of differences in opinion, unequal distribution of interests or the abuse of the power. In general, in the early time, a startup may not seem to have a problem, but after a while, the business with multi-owner often become problematic and sometimes may lead to divisions. How can young Cambodians be prepared to avoid these problems in the future?
When starting a business, most people have little regard for contractual arrangements or legal obligations for each party invested in the business, but often busy focusing on running the business itself and trying to maximize profit. In general, when faced with a problem, no one would step up to take responsibility.
In addition, each person openly and secretly blames each other. But when it comes to success, everyone will want to take credit and even try to take advantage of each other. But, one day (including the most difficult times and the most lucrative) everyone seems to no longer listen to each other and try to compete for their own benefits, which will disappoint some partners due to exploitation or because other members decided to quit.
CEO of Frangipani Villa Hotel Din Somethearith claimed that the issue which lead members (investors) to disagree is due to various reasons. Each individual is very different, and things may change depending on the current situation. But to be able to work together for a long time, the partners must be understanding and allocate work clearly.
"When it comes to Partnership, one must be very understanding and allocate work depending on each person's strength. One must not be arrogant and do everything alone because that will only bring disagreements and eventually separate the group," said Din Somethearith.
He added that we must be able to separate and allocate clearly because people are always in conflict over money and power.
Moreover, Pech Bolene, CEO of Westline Education Group, in order to avoid future conflicts within investors, each investor must be sure to prepare a contract and legal documents. Those documents must specify who does what, how much each will benefit, and how one can quit the business.
“The agreement has to be prepared in detail. You must argue beforehand to come up with a clear plan and structure in the beginning so that in the future when the investors need to step out, they can leave without conflicts,” he emphasized.
Similarly, Her Excellency Keo Mom’s idea is no different from Mr. Bolene. She also stressed that having proper contracts and clear rules is to avoid future problems, especially when the business grows.
Nevertheless, at this point, Mr. Din Somethearith believed that choosing the right partner is probably more important than having contracts because even with a clear contract, there is still potential division and conflicts in the future.
By: Tan Somphors