Shareholder Agreement

Under the Canadian corporate legislation, a simple majority of voting shares (50% plus one) yields effective control over an entire corporation, which means that interests of minority shareholders can easily be neglected.  Disputes between shareholders can spill out in the public arena of our court system, which can be very emotionally draining and expensive.  These are just some of the reasons why shareholders in a corporation are wise to govern their relationship with a shareholder agreement.  A shareholder agreement can set out specific mechanisms in the event of share transfer, dispute resolution or shareholder loans.  It can prescribe which instances require unanimous shareholder approval.  We will be able to anticipate certain long-term issues after evaluating the ownership structure of your corporation, and then draft a shareholder agreement that can withstand the test of time and allow your business to flourish without interruptions.