The Silent Shareholder Agreement is a crucial document used in the UAE business environment when an investor wishes to provide capital without taking an active role in business operations. This type of agreement is particularly relevant under UAE Commercial Companies Law (Federal Law No. 2 of 2015) and must be carefully structured to comply with local regulations while protecting both active and silent partners' interests. The document typically includes detailed provisions for capital contribution, profit sharing, confidentiality obligations, and financial reporting requirements. It's commonly used in situations where investors want to maintain anonymity while participating in business ventures, or when businesses seek capital without surrendering operational control. The agreement must address specific UAE requirements regarding foreign ownership, commercial licensing, and corporate governance while maintaining the distinctive characteristics of a silent partnership arrangement.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of the active partner(s) and the silent partner, including full legal names and addresses
2. Background: Context of the agreement and brief description of the business venture
3. Definitions: Key terms used throughout the agreement, including 'Silent Partner', 'Business', 'Capital Contribution', and 'Profit Share'
4. Capital Contribution: Details of the silent partner's investment amount, payment terms, and any additional funding obligations
5. Profit and Loss Sharing: Formula and mechanisms for calculating and distributing profits and losses
6. Role and Limitations: Clear definition of the silent partner's non-management role and restrictions on involvement in business operations
7. Confidentiality: Obligations regarding the confidential nature of the silent partnership and business information
8. Financial Reports and Audit Rights: Silent partner's rights to financial information and audit provisions
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution
1. Tag-Along Rights: Include when the silent partner wants the right to join in any sale of the business by the active partner
2. Drag-Along Rights: Include when the active partner wants the right to force the silent partner to join in a sale
3. Right of First Refusal: Include when parties want pre-emptive rights on transfer of interests
4. Additional Investment Rights: Include when the silent partner may have future opportunities to increase investment
5. Business Expansion Provisions: Include when there's potential for expanding into new business lines or territories
6. Conversion Rights: Include when there's possibility of converting silent partnership to active partnership
7. Anti-dilution Protection: Include when protecting against dilution from future capital raises
8. Islamic Finance Compliance: Include when parties require Sharia compliance provisions
1. Schedule 1 - Capital Contribution Details: Detailed breakdown of initial and any planned future capital contributions
2. Schedule 2 - Profit Calculation Methodology: Detailed formula and examples of profit calculation and distribution
3. Schedule 3 - Business Plan: Overview of business objectives and financial projections
4. Schedule 4 - Reporting Templates: Format and templates for regular financial reports to silent partner
5. Schedule 5 - Compliance Requirements: List of UAE regulatory requirements and compliance procedures
6. Appendix A - Due Diligence Documents: List of documents reviewed by silent partner before entering agreement
7. Appendix B - Communication Protocols: Procedures for communications between parties and confidentiality maintenance
Find the exact document you need
Share Allocation Agreement
A UAE-compliant agreement governing the issuance and allocation of company shares to shareholders, structured according to UAE Companies Law.
Download
Limited Company Shareholder Agreement
UAE-governed shareholder agreement establishing rights and obligations between shareholders in a limited liability company, compliant with UAE Commercial Companies Law.
Download
Unitholder Agreement
UAE-governed agreement establishing rights and obligations between investment fund unitholders and fund manager, compliant with UAE Federal Law and SCA regulations.
Download
Shareholder Resignation Agreement
A UAE-compliant agreement governing a shareholder's formal exit from a company, including share transfer terms and mutual obligations under UAE law.
Download
Preference Share Agreement
UAE-governed agreement establishing terms for preference share issuance and shareholder rights under UAE Commercial Companies Law.
Download
Shareholder Control Agreement
A UAE law-governed agreement establishing rights and obligations between company shareholders, ensuring compliance with local regulations while protecting shareholder interests.
Download
Shareholders Agreement Contract
A UAE-governed agreement defining shareholders' rights, obligations, and relationships in a UAE-registered company.
Download
Shareholder Indemnification Agreement
UAE-governed agreement establishing shareholder indemnification terms and obligations under UAE Federal Law No. 32 of 2021.
Download
Share Redemption Agreement
UAE-governed agreement documenting terms and conditions for a company's redemption of shares from existing shareholders, ensuring compliance with UAE Commercial Companies Law.
Download
Company Shareholder Agreement
UAE-governed agreement establishing rights and obligations between company shareholders, compliant with UAE Commercial Companies Law and local regulations.
Download
Venture Capital Shareholders Agreement
A UAE law-governed agreement establishing rights and obligations between venture capital investors, founders, and shareholders, including investment terms, governance, and exit provisions.
Download
Shareholder Separation Agreement
UAE-governed agreement outlining terms and conditions for a shareholder's exit from a company, including share transfer and post-separation obligations.
Download
50 50 Shareholder Agreement
UAE-governed agreement establishing rights and obligations between two equal (50-50) shareholders, including governance and deadlock resolution mechanisms.
Download
Shareholder Operating Agreement
UAE-governed agreement establishing shareholder rights, obligations, and company operational framework under UAE Commercial Companies Law and Sharia principles.
Download
New Shareholder Agreement
UAE-governed Shareholders Agreement establishing rights and obligations between company shareholders, compliant with UAE Commercial Companies Law.
Download
Shareholder Withdrawal Agreement
UAE-governed agreement documenting a shareholder's withdrawal from a company, including share transfer terms and post-withdrawal obligations.
Download
Shareholder Management Agreement
UAE-governed agreement establishing shareholder rights, obligations, and management framework in compliance with UAE Commercial Companies Law.
Download
Silent Shareholder Agreement
UAE-compliant agreement establishing terms and conditions for a silent partnership arrangement, including investment terms and profit-sharing mechanisms.
Download
Shareholder Termination Agreement
UAE-compliant agreement governing the exit of a shareholder from a company, including share transfer terms and mutual releases.
Download
Share Purchase Agreement And Shareholders Agreement
UAE-governed agreement combining share sale provisions with ongoing shareholder arrangements, ensuring compliant transfer of ownership and future corporate governance.
Download
Private Equity Shareholders Agreement
UAE-governed shareholders agreement establishing rights and obligations between private equity investors and other shareholders, aligned with UAE commercial law and market practice.
Download
Minority Shareholder Agreement
UAE-governed agreement establishing minority shareholder rights and protections, including voting, representation, and exit provisions.
Download
Family Business Shareholders Agreement
UAE-governed agreement establishing ownership, governance, and succession framework for family businesses, aligned with UAE Family Business Law.
Download
Small Business Shareholder Agreement
UAE-governed shareholder agreement defining rights and obligations between small business shareholders, compliant with local commercial law.
Download
Shareholders Agreement Transfer Of Shares
UAE-governed agreement documenting share transfer between shareholders, including terms, conditions, and regulatory compliance requirements.
Download
Stakeholders Agreement
UAE-governed agreement defining rights, obligations, and relationships between company stakeholders, compliant with UAE Companies Law.
Download
Director Shareholder Agreement
UAE-governed agreement defining the relationship between directors and shareholders, including rights, obligations and governance structure under UAE law.
Download
Proxy Shareholder Agreement
UAE-governed agreement establishing nominee shareholder arrangements and beneficial ownership rights, compliant with UAE Commercial Companies Law.
Download
LLC Shareholder Agreement
UAE-governed agreement establishing rights and obligations between LLC shareholders, compliant with Federal Law No. 32 of 2021.
Download
Shareholders Agreement For Private Limited Company
UAE-governed agreement defining rights and obligations between shareholders in a private limited company, ensuring compliance with local commercial law.
Download
Shareholder Support Agreement
UAE-governed agreement defining shareholders' commitments to provide financial or operational support to a company, aligned with UAE Commercial Companies Law.
Download
Founder Shareholder Agreement
UAE-governed agreement establishing rights and obligations between founding shareholders of a company, aligned with UAE commercial law requirements.
Download
Entrusted Shareholding Agreement
A UAE-governed agreement establishing a trust arrangement where one party holds shares on behalf of another, compliant with UAE Federal laws and regulations.
Download
Partnership Shareholder Agreement
UAE-governed agreement establishing rights and obligations between business partners and shareholders, aligned with UAE Federal Law No. 32 of 2021.
Download
Share Contribution Agreement
UAE-governed agreement documenting the contribution of shares from contributor(s) to a receiving entity, ensuring regulatory compliance and protecting parties' interests.
Download
Employee Shareholder Agreement
UAE-governed agreement establishing terms for employee share ownership, including vesting conditions, rights, and exit provisions.
Download
Shareholder Subscription Agreement
UAE-governed agreement documenting terms for share subscription in a company, including price, quantity, and compliance with local regulations.
Download
Shareholder Investment Agreement
UAE-governed agreement establishing investment terms, shareholder rights, and corporate governance structure for company investments.
Download
Shareholder Transfer Agreement
UAE-governed agreement documenting the transfer of shares between shareholders, ensuring compliance with local commercial law and regulations.
Download
Joint Venture And Shareholders Agreement
UAE-governed agreement establishing terms and conditions for joint venture partnership and shareholder relationships in a UAE company.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)