Shareholder Agreements

Shareholders agreements enable shareholders to protect their interests. Contact us to learn more.

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.

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