Minority Shareholder

A minority shareholder is an investor who owns less than 50% of a company’s shares, thereby having limited control over corporate decisions. In the UAE, Federal Decree-Law No. 32 of 2021 on Commercial Companies provides legal protections for minority shareholders, including the right to challenge unfair decisions, inspect company records, and receive dividends. Free zones such as DIFC and ADGM have their own shareholder protection frameworks based on common law principles. Minority shareholders often use shareholder agreements, voting rights provisions, and exit clauses to safeguard their interests in UAE businesses.

« Back to Main Glossary

Disclaimer

This article is intended for general informational purposes and does not constitute legal advice. The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advice to ensure the best possible solution for your individual circumstances.

About ATB Legal

ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.

Please feel free to reach out to us at office@atblegal.com for a non-obligatory initial consultation.

Minority Shareholder