Saturday 27 / December / 2025
In corporate governance, fairness often depends on protecting those with less control. Oman’s Commercial Companies Law promulgated under Royal Decree 18/2019, offers strong protections for minority shareholders, particularly in joint stock companies, where power can concentrate among the majority.
Speaking exclusively to the Times of Oman, Dr. Mohammed Ibrahim Al Zadjali, Founding Partner of Mohammed Ibrahim Law Firm, a leading law office in Oman, explained that “a minority shareholder may hold fewer shares, but the law ensures their voice cannot be ignored. The law grants minority shareholders specific rights that enable them to participate meaningfully in company decisions and hold the board accountable where necessary.”
He added that, “Shareholders holding at least 10% of the capital of a joint stock company have the right to request the board to convene a general meeting to discuss the specific matters. If the board fails to issue the invitation within 30 days, the shareholders may approach the company's auditor, who shall then convene the meeting directly.”
He further stated that “Shareholders holding at least 5% of the shares in a joint stock company may request the Concerned Body to suspend a general assembly resolution if it violates the law, the company’s articles, or prejudices their rights. The process for challenging resolutions involves a precise sequence of actions.
Initially, a request for suspension must be submitted to the Concerned Body within 5 working days of the resolution's adoption. Once the Concerned Body issues a suspension decision, any interested party is then
required to institute a case for invalidation before the competent court and notify the Concerned Body with a copy thereof, both actions within 5 working days of the date the suspension decision was issued.”
“Oman’s approach ensures that minority shareholders are not merely spectators. Their rights are protected by structure, not chance,” he concluded.
(Mohammed Ibrahim Law Firm ([email protected]), (+968 244 87 600) was established 18 years ago and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).
