Document background
The Unanimous Shareholder Agreement is a crucial document used when establishing or updating the governance framework of a company in Saudi Arabia. It becomes particularly relevant when multiple shareholders are involved and there's a need to clearly define their relationships, rights, and obligations. This document must comply with the Saudi Companies Law 2015, Capital Market Law, and Sharia principles, making it distinct from similar agreements in other jurisdictions. The agreement typically includes detailed provisions on corporate governance, share transfers, profit distribution, and dispute resolution mechanisms. It serves as a fundamental tool for protecting shareholder interests while ensuring smooth company operations. The Unanimous Shareholder Agreement is especially important in private companies where shareholders want to establish clear guidelines for company management and potential future scenarios such as exits or capital increases.
