Business Partners in Jordan: A Shareholders’ Agreement That Reduces Disputes

By Attorney Dr. Omar Shehadeh

A company’s success relies on more than an idea and funding. It also requires a clear agreement between partners before disputes arise. A shareholders’ agreement regulates the working relationship beyond broad labels.

Important clauses

• Capital contributions, voting rights, and management roles.
• A process for material decisions.
• Profit distribution and loss allocation.
• Rules for selling shares or admitting a new investor.
• Dispute resolution and confidential-information protection.

Every business has its own structure and risk. A generic template is rarely sufficient; precise drafting turns expectations into obligations that can be understood and managed.

This is general guidance. Seek legal advice when preparing an agreement for your Jordanian business.