Document background
The Family Business Shareholders Agreement is a crucial document for family-owned enterprises in Saudi Arabia, where family businesses constitute approximately 90% of private sector companies. This agreement becomes essential when family businesses seek to formalize their governance structure, plan for succession, and ensure long-term sustainability across generations. It addresses key challenges such as ownership transition, business continuity, and dispute resolution while complying with Saudi Companies Law, Sharia principles, and modern corporate governance requirements. The document is particularly relevant in the context of Saudi Vision 2030's emphasis on family business sustainability and professionalization, incorporating both traditional family values and contemporary business practices. It typically includes detailed provisions for share transfers, voting rights, dividend policies, and family council operations, while ensuring alignment with Islamic inheritance principles.
