Can I get legal assistance to make a shareholders’ agreement that governs the profit participation?

Hello,

Thank you for reaching out.

I’d be glad to assist you with this.

We can prepare a tailored shareholders’ agreement that reflects your restructuring goals and addresses the introduction of employee shareholders.

The agreement will clearly govern their profit participation, restrict voting rights to specified decisions, and include a structured buy-back mechanism to safeguard the company’s interests if an employee exits.

Our focus will be to design a framework that not only protects the business but also motivates and retains key employees in line with your long-term strategy.

I’d be happy to schedule a call to understand your specific requirements in more detail and guide you on the next steps.

Regards,

Dear Questioner,

Thank you for reaching out to us regarding your company’s restructuring and the introduction of employee shareholders as part of your retention plan.

We understand that you require a shareholders’ agreement that will govern the employees’ profit participation, limit their voting rights to specific decisions, and outline a buy-back policy in the event of their departure.

We can assist you in drafting and structuring such an agreement tailored to your business objectives and in compliance with UAE corporate laws.

As part of the process, we would begin with a consultation to review your company’s current structure, specific requirements, and any regulatory considerations.

Following this, we will prepare a customized shareholders’ agreement reflecting the agreed terms and provide guidance on implementation and compliance.

Should you wish to proceed, we would be glad to schedule a consultation at your convenience to discuss the details and next steps.

Best regards,

Mohammad Salah

Legal Consultant

Greetings,

I can offer some general guidance on what you might consider when drafting a shareholders' agreement in the UAE.

It's crucial to consult with a qualified legal professional who specializes in UAE corporate law to ensure compliance with local regulations and to tailor the agreement to your specific needs.

Here are some key elements you might include in your shareholders' agreement:

1. Profit Participation: Clearly define how profits will be distributed among shareholders, including any specific terms for employee shareholders. Consider whether profit sharing will be based on the number of shares held or another formula.

2. Voting Rights: Specify the voting rights of employee shareholders. You might want to limit their voting rights to certain decisions, such as those affecting the company's strategic direction, while excluding them from day-to-day operational decisions.

3. Buy-Back Policy: Establish a clear buy-back policy for shares if an employee leaves the company. This should include the conditions under which shares can be bought back, the valuation method for the shares, and the timeline for the buy-back process.

4. Transfer of Shares: Outline any restrictions on the transfer of shares, including any pre-emption rights for existing shareholders or the company.

5. Confidentiality and Non-Compete Clauses: Consider including clauses that protect the company's confidential information and prevent departing employees from competing with the company for a specified period.

6. Dispute Resolution: Define the process for resolving disputes among shareholders, which might include mediation or arbitration.

7. Amendments: Specify the process for amending the shareholders' agreement, including any required approvals.

8. Governing Law: Clearly state that the agreement is governed by UAE law.

Given the complexity and importance of a shareholders' agreement, it's advisable to work with a legal expert who can draft a document that aligns with your business goals and complies with UAE legal requirements.

Dear Inquirer,

Thank you for reaching out. A shareholders’ agreement of this nature requires careful drafting to cover profit participation, voting rights restrictions, and buy-back mechanisms while ensuring compliance with UAE corporate laws.

Our legal team can certainly prepare a tailored agreement that protects your business interests and aligns with your restructuring goals.

We recommend booking a consultation through our website or contacting our office directly so we can review your specific requirements and proceed accordingly.

Best regards,

I'm glad to hear about your business restructuring plans. However, I'm able to provide legal services or draft legal documents.

For creating a shareholders' agreement that includes specific provisions such as profit participation, limited voting rights, and a buy-back policy, it's essential to send the basic agreed-upon points so that we can hold an online meeting and discuss them before drafting the same.

Whatsapp

Dear Client,

Greetings from Al Nassar Advocates!

Yes, we can help you with that. Kindly visit our office after taking an appointment along with the documents, or send us the details via email for review, and later we could send the estimation.

Regards,

Adv. Rihan Raheem

Senior Legal Consultant

Welcome

Regarding this agreement, we can prepare such an agreement for your benefit, as well as conclude all agreements and contracts.

Please share your WhatsApp phone number or send the data and documents via WhatsApp.

Best regards

Dear Sir/Madam,

Thank you for reaching out to us with your query.

Our legal team is well-equipped to draft a comprehensive shareholders’ agreement tailored to your business restructuring needs.

We can prepare an agreement that clearly governs employee shareholders’ profit participation, sets limits on voting rights for certain decisions, and includes a detailed buy-back policy in the event they leave the company.

Our service includes:

- Detailed review of your company’s current structure and objectives.

- Drafting a customized shareholders’ agreement compliant with UAE laws.

- Ensuring provisions protect your company’s interests while motivating employee shareholders.

- Advising on implementation and ongoing compliance.

Please let us know a convenient time for an initial consultation to discuss your requirements and provide a fee proposal.

Looking forward to assisting your business growth.

Kind regards,

Abdul Wahied

Thank you for reaching out to us through Legal Advice Middle East.

Your request falls within a strategic corporate matter where multiple legal directions are possible.

The most effective approach usually depends on the existing company structure, the number of employee shareholders to be introduced, and the retention incentives tied to their participation.

We have successfully handled a very similar case where a client sought to integrate employees as minority shareholders, and our tailored agreement secured their loyalty while protecting the founders’ control.

The court later upheld the agreement when challenged, which confirmed the strength of the structure we prepared.

We can draft a customized shareholders’ agreement for you that balances profit participation with controlled decision-making, and also includes a clear buy-back mechanism to avoid disputes when employees exit.

The key advantage is that we ensure employees feel rewarded, yet major corporate decisions remain under the control of the existing owners.

To provide precise advice, we would need to review your company’s current memorandum of association, existing shareholder arrangements, and retention objectives.

Our multilingual consultants are available in Arabic, English, Russian, Hindi, and Chinese to assist you throughout this process.

You need a tailored Shareholders’ Agreement that gives employee-shareholders profit rights, restricts their voting powers, and sets clear buy-back terms if they leave, which our legal team can draft once you provide details on share structure, dividend rules, and exit pricing.

Please contact us via email or by phone.

Thanks for your post.

I assist with structuring employee equity plans and drafting shareholders’ agreements that cover:

- Profit participation without loss of control.

- Limited voting rights for employee shareholders.

- Clear buy-back and leaver provisions.

If you would like, I can confirm the scope, timeline, and a fixed fee to get this in place quickly.

Would you like me to outline the next steps?