Document background
The Minority Protection Rights Shareholders Agreement is a critical document used in Saudi Arabian companies where minority shareholders require specific legal protections and rights. It is particularly relevant in private companies, joint ventures, and family businesses where minority stakeholders need safeguards against potential majority shareholder decisions that could adversely affect their interests. The agreement becomes especially important in the context of Saudi Arabia's Vision 2030, which encourages foreign investment and private sector participation. The document typically includes provisions for board representation, voting rights on key decisions, information rights, tag-along rights, and exit mechanisms, all while ensuring compliance with Saudi Companies Law and Sharia principles. It's commonly used during company formation, restructuring, or when new investors are entering an existing business.
