Shareholders' Agreement (2 Shareholders) – Short Form

Document Summary

The Shareholder's Agreement outlines the terms and conditions agreed upon by the parties who have formed a company in the United Arab Emirates.

The agreement covers various aspects of the company, such as shareholder rights and responsibilities, ownership percentages, and decision-making authority.

Description

This is a short form standard template of a shareholders’ agreement where it governs the relationship of two shareholders without mentioning pre-emption rights, drag along rights, tag along rights or reference to a board of directors.

The parties must read this template carefully to agree on the terms outlined in the agreement.

This agreement contains the following sections:

1. Supremacy of this Agreement
2. Shares and Shareholders
3. Assets and Liabilities
4. Management and Reserved Matters
5. Dividend Policy
6. Transfers
7. Announcements and Confidentiality
8. Covenants
9. Duration
10. Notices
11. Costs
12. Severability
13. General
14. Entire Agreement
15. Governing Law and Jurisdiction
16. Language
17. Anti-Corruption

Annex 1 – Shareholding, distribution of profits and management fees

Annex 2 – Lock-up Undertaking

Jurisdiction

This document is intended for use in the United Arab Emirates.

Disclaimer

This document is provided for reference only and is not intended to be, and should not be considered, legal advice. Determinations about whether this document will be appropriate in your particular situation or jurisdiction should be made after consultation with a legal counsel. Kanoony will not assume any legal liability that may arise from the use of this document.

Before Execution

• The information on this front page or contained in the headers and footers of this instrument are for guidance purposes only.
• Please delete this front page together with the information contained in the headers, footers, and the endnotes prior to circulating this letter. Where square brackets […] and highlights are used in the document, it indicates that there is missing or incomplete information which will need to be incorporated prior to signature.
• Please remove the square brackets and all highlighting prior to signature.