Shareholder Support Agreement Template for United Arab Emirates

The Shareholder Support Agreement serves as a crucial document in the UAE corporate landscape, particularly for companies requiring ongoing financial backing or strategic support from their shareholders. This agreement becomes essential in project finance transactions, joint ventures, or when a company is expanding or facing financial challenges. The document, governed by UAE law, details the nature, extent, and conditions of support to be provided by shareholders, ensuring compliance with UAE Federal Law No. 32 of 2021 and relevant financial regulations. It typically includes mechanisms for capital injection, guarantees, or other forms of financial support, while incorporating necessary provisions for UAE regulatory compliance and optional Sharia-compliance elements. The agreement is particularly relevant for companies operating in capital-intensive sectors or those subject to specific regulatory requirements in the UAE.

1. Parties: Identification of all parties to the agreement, including the Company, Supporting Shareholders, and any other relevant parties

2. Background: Context of the agreement, including the Company's structure, existing shareholding, and purpose of the support arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. Support Obligations: Core section detailing the nature and extent of support to be provided by the supporting shareholders

5. Financial Support Mechanisms: Specific mechanisms for providing financial support, including equity injections, loans, or guarantees

6. Conditions Precedent: Any conditions that must be satisfied before the support obligations become effective

7. Representations and Warranties: Statements of fact and assurances from each party regarding their capacity and authority

8. Covenants: Ongoing obligations and commitments of the parties throughout the agreement's duration

9. Duration and Termination: Term of the agreement and circumstances under which it may be terminated

10. Events of Default: Circumstances constituting default and consequences thereof

11. Remedies: Available remedies in case of breach or default

12. Confidentiality: Provisions regarding the treatment of confidential information

13. Notices: Process and requirements for formal communications between parties

14. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant jurisdiction for disputes

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