Document background
The Investment Shareholders Agreement is a crucial document used when multiple parties invest in a Saudi Arabian company, whether through initial formation or subsequent investment rounds. It serves as the primary governance document defining the relationship between shareholders, the company's management structure, and key operational parameters. This agreement is particularly important in the Saudi context due to specific requirements under the Companies Law, Capital Market Regulations, and Shariah compliance considerations. The document typically includes detailed provisions for corporate governance, share transfer restrictions, profit distribution mechanisms, and dispute resolution procedures that are enforceable under Saudi law. It's essential for both local and foreign investments, requiring careful consideration of Saudi Arabia's foreign investment regulations and corporate governance requirements.
