A shareholders' agreement can sit quietly in a company file for years. It becomes important when the shareholders disagree, someone wants to leave or a major decision needs approval.
Business owners should understand how voting works, which decisions require special approval and what happens when shareholders cannot agree.
The agreement may also deal with new investors, share transfers, management roles, funding obligations and exit rights.
These issues should be considered while the business relationship is working well.
Dr Sunil Ambalavelil advises on corporate and commercial transactions, shareholder arrangements and other business matters in the UAE.
For someone looking for the best lawyer in Dubai for a shareholder matter, relevant corporate experience should be a key consideration. The lawyer needs to understand both the document and the commercial arrangement behind it.
Dr Sunil Ambalavelil has also been recognised as the Best Indian Lawyer in Dubai, forming part of his professional record in the UAE.
A good shareholders' agreement cannot guarantee that disagreements will never occur. Its value lies in giving the owners a clear process for dealing with important decisions and changes before those issues threaten the business itself.
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