Shareholders agreements are an effective way for shareholders to safeguard their interests when there are other shareholders in a private corporation. Shareholders agreements can be used to restrict the powers of directors and made binding on future shareholders. The following is a list of provisions that are commonly included in a shareholders agreement:

• Restrictions on share transfers are used to control who can become a shareholder
• Buy-sell provisions are used to deal with breakdowns in the relationship between shareholders, where a shareholder must choose to either sell their shares or buy the another shareholder's shares at a certain price.
• Right to elect directors are used to increase the rights of minority shareholders to elect a corporation's directors.
• Finance Requirements are used to set out whether or not shareholders must loan funds to a corporation.
• Dispute resolution provisions are used to provide a process through which shareholders to resolve disputes.
• Restrictive covenants include non-competition, confidentiality and non-solicitation provisions and are used to protect the interests of the corporation and other shareholders.

Shareholders agreements are often highly customized to fit the needs of a corporation and its shareholders. We draft and provide legal advice relating to shareholders agreements to ensure our clients' interests are protected. Contact us to learn more.