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

Business Contracts |Enforceable Contracts

What is an Enforceable Business Contract? An enforceable business business contract is essential to conducting a business. Done right, they provide peace of mind and clarity to both parties. When

Continue Reading
Read More...
GST/HST Account Registration, Collection, and Remittance

GST/HST Account Registration, Collection, and Remittance A goods and services tax (GST) number is a unique tax identification number assigned to a business by the Canada Revenue Agency (CRA). It’s

Continue Reading
Read More...
Pay Less Tax on Your Home-Based Business

Pay Less Tax on Your Home-Based Business Is your home where you principally conduct your business? Do you spend most of your business working hours at home? Is your home

Continue Reading
Read More...
Close Menu

Book an Appointment 1-800-631-7923

Speak with a Lawyer
1-800-631-7923

Email Us
[email protected]