Document background
The Multi Member Operating Agreement is essential for businesses establishing a multi-member company structure in Saudi Arabia. It serves as the foundational document defining the relationship between members and the operational framework of the company. This agreement is particularly crucial in the Saudi Arabian context, where business operations must comply with both the Companies Law and Sharia principles. It is used when two or more parties wish to form a company, detailing capital contributions, profit-sharing arrangements, management structure, and decision-making processes. The document must incorporate specific provisions required by Saudi law, including local ownership requirements if foreign investors are involved, and address corporate governance requirements under Saudi regulations. It's particularly relevant for businesses seeking to establish a formal presence in Saudi Arabia while ensuring compliance with local legal and regulatory frameworks.
