Document background
The Shareholders Agreement Contract is a fundamental document used when establishing or restructuring shareholding arrangements in companies operating under Saudi Arabian law. It becomes essential when multiple shareholders are involved in a business venture and need to clearly define their rights, obligations, and relationships. This agreement is particularly crucial in the Saudi context as it must comply with both the Companies Law of 2015 and Sharia principles, while potentially accommodating foreign investment regulations where applicable. The document typically covers critical aspects such as share ownership, transfer restrictions, management rights, profit distribution, and dispute resolution mechanisms. It's commonly used in various scenarios including company formation, joint ventures, private equity investments, and family business restructuring, providing a robust framework for corporate governance and shareholder protection.
