Do we have to go to court to resolve a shareholder dispute?

Not necessarily. Many shareholder disputes are resolved through negotiation, mediation or mechanisms already set out in the company's documents. A court-based process is one option among several and depends on the facts.

What if there is no shareholders' agreement?

The memorandum of association and the applicable company law generally still govern the relationship. The absence of a shareholders' agreement can make some issues less clear, which is often a reason to seek advice early.

Can a shareholder be removed from the company unilaterally?

This depends on the company's documents and the applicable law and procedure; it is not something to assume can be done informally.

How long does resolving a shareholder dispute usually take?

There is no fixed timeframe. It depends on the complexity of the issue, the documents available and whether the parties are willing to negotiate.

Shareholder Disputes in UAE Companies

Key points

Most disputes trace back to the memorandum of association or shareholders' agreement, so these documents are the starting point.

Disagreements often concern management authority, profit distribution, information rights or an alleged breach of duty.

Negotiation and mediation are commonly explored before any formal escalation.

Company records — resolutions, minutes, financial statements — are usually central to any dispute.

The appropriate procedure depends on the applicable law, the company's structure and the facts.

Understanding the situation

A shareholder dispute can take many forms: a disagreement about how the company is being managed, a claim that one shareholder is being excluded from decisions or information, a dispute over how profits are distributed, or an allegation that a shareholder or manager has acted outside their authority.

The starting point in almost every case is the company's own documents — its memorandum of association, any shareholders' agreement, and the resolutions or minutes that record how decisions were actually taken. What is realistic and what procedure applies depend on what those documents say and on the applicable law at the time.

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Possible options

Which combination of these is appropriate depends on the size of the company, the number of shareholders, whether the dispute concerns money, management or trust, and what the company's own documents allow for.

Direct discussion between the shareholders, often the fastest way to resolve a misunderstanding before positions harden.
A structured negotiation or mediation process, which may help preserve the business relationship.
Reliance on mechanisms already built into the memorandum of association or shareholders' agreement, such as decision-making thresholds or dispute procedures.
A formal written notice setting out the concern and requesting a response within a reasonable period.
A court-based process where the dispute cannot be resolved by agreement, subject to the applicable procedure and evidence.

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Practical steps

1Gather the memorandum of association, any shareholders' agreement and the trade licence.
2Collect recent resolutions, minutes and financial statements relevant to the disagreement.
3Write down a clear, factual timeline of what happened and when.
4Consider raising the concern in writing with the other shareholder(s) before escalating.
5Avoid actions that could be seen as unilaterally changing the status quo, such as excluding a shareholder from records.
6Seek advice on the options available given your specific documents and facts.

Documents You May Need

Depending on your matter, relevant documents may include:

Memorandum of association (MOA) and any amendments

Shareholders' agreement, if one exists

Trade licence and company registration documents

Board or shareholder resolutions and meeting minutes

Financial statements and profit-distribution records

Correspondence between the shareholders about the dispute

Any prior settlement or side agreements between the parties

Common mistakes to avoid

Acting without checking what the memorandum of association actually provides.

Excluding another shareholder from records or decisions without a documented basis.

Relying on verbal understandings instead of the company's written documents.

Escalating immediately without attempting a documented conversation first.

Delaying action while the company's position or records change.

Sources & official references

Official references for this guide are being verified and will be listed here once checked.

Author:

SANADKO Legal Content Team

Published:

4 September 2026

Jurisdiction:

UAE

Reviewer:

Pending legal review

This guide is general information prepared by our content team. Its substantive legal content has not yet been signed off by a legal reviewer.

Shareholder Disputes in UAE Companies

Key points

Understanding the situation

Possible options

Practical steps

Documents You May Need

Common mistakes to avoid

When professional legal advice may be useful

Frequently asked questions

Sources & official references

Is Your Situation Similar?

Related legal guides

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Shareholders Agreement

Transferring or Exiting a Company Shareholding

Mediation and Amicable Settlement in UAE Disputes