Document background
The Stock Agreement serves as a fundamental document in Saudi Arabian corporate governance, establishing the framework for share ownership and transfer within companies. This agreement is typically used when companies need to formalize their shareholding structure, issue new shares, or regulate the relationship between shareholders. It must comply with the Saudi Companies Law of 2015, Capital Market Authority regulations, and Shariah principles. The Stock Agreement includes essential provisions regarding share classes, transfer restrictions, voting rights, and corporate governance mechanisms. It's particularly crucial for private companies, family businesses, and enterprises seeking investment, as it provides clarity on ownership rights and obligations while ensuring regulatory compliance in the Saudi Arabian market.
