Phone Phone

Shareholder Agreements

If you have one or more partners in your corporation, you will need a shareholder agreement. Shareholder agreements set out the responsibilities of each shareholder or shareholder-employee, the terms of exit of a shareholder, the process governing disputes between shareholders, the method for valuing shares, and, if need be, the process for removing a shareholder.

What Do Shareholder’s Agreements Do?

Shareholder agreements are said to target the 5 Ds – death, disability, divorce, divesture and dispute. Regarding divesture, clauses such as drag-along, piggy back, or shot gun clauses can ensure that the shares of a corporation’s minority shareholders will be bought out and ‘dragged along’ with the majority shareholders if a prospective purchaser comes along. Agreements also determine what should happen if a shareholder suffers from disability or death. In the event of divorce, a shareholder agreement would prevent shares from being transferred to one’s spouse upon equalization of net family property.

Shareholders agreements are integral to a corporation and ensure that exists or disputes are handled seamlessly and without contention.

With years of experience in corporate and commercial law, Kalfa Law is your premier partner for your business needs.

Own a Corporation? We’re Here to Help™

Insights

Employment Considerations in Mergers and Acquisitions

Employment Considerations in Mergers and Acquisitions When considering an acquisition of a Canadian business, due diligence related to employment and labour matters is critical as there are various issues that

Continue Reading
Read More...
PPSA – Know Your Security Registration

PPSA – Know your Security Registration The Personal Property Security Act (Ontario) (“PPSA”) (the “Act”), offers a complete set of regulations to control creditors’ and debtors’ rights when personal property

Continue Reading
Read More...
Why a Section 85 Rollover is Recommended for Holding Companies

On the Roll Again – Why a Section 85 Rollover is Recommended for Holding Companies Section 85 rollovers are a preferred method of transferring assets from one entity to another

Continue Reading
Read More...
Close Menu

Book an Appointment 1-800-631-7923

Call Us
1-800-631-7923
Speak with a Lawyer
1-800-631-7923

Email Us
[email protected]