Document background
The Small Business Shareholder Agreement is a fundamental document for small and medium-sized enterprises operating in Saudi Arabia who wish to establish clear guidelines for shareholder relationships and corporate governance. This agreement becomes essential when two or more parties invest in a business venture and need to formalize their rights, responsibilities, and obligations under Saudi law. It addresses crucial aspects such as share ownership, management control, profit distribution, and dispute resolution, while ensuring compliance with both the Saudi Companies Law 2015 and Sharia principles. The document is particularly important in the context of Saudi Arabia's Vision 2030, which emphasizes the growth of the private sector and small businesses, providing a legal framework that protects all parties' interests while facilitating business operations and growth.
