Majed Garoub

The Commercial Companies Law establishes critical protections for shareholders, ensuring their legal rights are upheld and cannot be altered or revoked by either ordinary or extraordinary general assemblies. These rights include attending meetings, voting, receiving dividends, and accessing company records. Any decisions that infringe upon these rights are deemed null and void.

Conflicts can sometimes arise between shareholders —whether majority or minority— and the board or management, especially during mergers or acquisitions. Shareholders have the right to oppose new policies or strategies that may not align with their interests, and these objections must be respected.

Despite these protections, some shareholders, particularly those on the board of directors or those with majority ownership, may treat the company as if it were their personal property, neglecting the interests of other shareholders. This disregard often leads to the exclusion of some shareholders from key consultations or decision-making processes on major issues, contradicting the intent of the law.

All shareholders are entitled to equal rights and must be provided the opportunity to exercise these rights as prescribed by the law.