Shareholder Agreement

A shareholder agreement is a contract between a company’s shareholders that outlines their rights, obligations, and corporate governance rules. In the UAE, shareholder agreements help define profit distribution, voting rights, exit strategies, and dispute resolution mechanisms. While Federal Decree-Law No. 32 of 2021 on Commercial Companies governs shareholder rights for LLCs and PJSCs, companies in DIFC and ADGM follow common law principles, allowing more flexibility in structuring agreements. Shareholder agreements are essential for joint ventures, family businesses, and startup investments, providing clarity and protection for minority investors.

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Shareholder Agreement