Partnership Share Agreement Template for United Arab Emirates

The Partnership Share Agreement is a crucial document for businesses establishing partnerships in the United Arab Emirates. It serves as the foundational agreement between partners, whether they are individuals, corporate entities, or a combination of both, who wish to enter into a formal business relationship under UAE law. This document is essential when partners need to clearly define their ownership stakes, capital contributions, profit-sharing arrangements, and management rights while ensuring compliance with UAE Commercial Companies Law (Federal Law No. 32 of 2021) and relevant emirate-level regulations. It's particularly important for foreign investors partnering with UAE entities, as it needs to address local ownership requirements and commercial regulations specific to the UAE business environment.

1. Parties: Identification of all partners entering into the agreement, including full legal names, addresses, and registration details for corporate entities

2. Background: Context of the partnership formation, business objectives, and any relevant historical relationship between the parties

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Partnership Structure: Legal form of partnership, registration details, and business activities

5. Capital Contributions: Details of initial and subsequent capital contributions from each partner

6. Shareholding Structure: Specification of partnership shares, classes of shares if applicable, and share transfer restrictions

7. Management and Control: Management structure, voting rights, and decision-making processes

8. Profit and Loss Sharing: Distribution of profits and allocation of losses among partners

9. Partner Rights and Obligations: Detailed rights and responsibilities of each partner

10. Reserved Matters: Decisions requiring special majority or unanimous consent

11. Transfer of Shares: Procedures and restrictions for transferring partnership shares

12. Term and Termination: Duration of partnership and circumstances for termination

13. Dispute Resolution: Procedures for resolving disputes between partners

14. Governing Law: Confirmation of UAE law application and jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability