Check Your Shareholder Agreement — UAE
Upload your shareholder agreement. AI checks minority protections, exit mechanisms, deadlock clauses, and anti-dilution rights in 30 seconds.
What TenderScan checks in your shareholder agreement:
What We Find
Critical risks our AI flags in shareholder agreements
Minority Shareholder Squeeze
No anti-dilution protection or pre-emption rights. Majority shareholders can issue new shares, diluting your stake to nothing without your consent or giving you the chance to invest.
Dividend Lock-Up
Clauses giving the board sole discretion on dividend distribution with no minimum payout requirement. Profits can be reinvested indefinitely, starving minority shareholders.
Deadlock Resolution Missing
No mechanism for resolving 50/50 deadlocks. Without Russian roulette, Texas shootout, or mediation clauses, a disagreement can paralyse the company indefinitely.
Tag-Along Rights Absent
No tag-along clause protecting minority shareholders. If the majority sells their stake, you could be left as a minority shareholder with a new partner you never chose.
Exit Mechanism Gaps
No put option, call option, or compulsory buyout mechanism. Without clear exit terms, you may be trapped in a company with no way to realise your investment.
Reserved Matters Too Narrow
Key decisions like taking debt, selling assets, or changing business direction not requiring your consent. Without proper reserved matters, majority shareholders control everything.
Real Finding
We found “the board may issue new shares at par value without requiring existing shareholder consent or offering pre-emption rights” in 42% of shareholder agreements analysed. This allows majority shareholders to dilute minorities at will.
