Custom Shareholders Agreement
A Shareholders Agreement is an agreement between the shareholders of the company which normally regulates various aspects of the governing of the company.
CAD2,000.00
| Suited For | All Canadian limited companies |
|---|---|
| Custom Fitted | Yes |
| Prepared By | Your Suited Experienced Solicitor |
What our custom Shareholders Agreement service comprises
Our expert solicitors will custom fit your Shareholders Agreement to the unique needs of your business.
No matter the type of business you have, we’ll cater the Shareholders Agreement to your specific needs.
The importance of custom Shareholders Agreement
A Shareholders Agreement is the foundational document in which the relationship between all shareholders, between each other, and with the company are regulated.
It would be great if when starting a company with family, friends, strangers or business acquaintances, there would be an automatic guarantee that it will be smooth sailing and that no problems will arise. Sadly, this is not always the case. In our experience, fallouts between shareholders are one of the most common causes leading to the failure of a businesses.
Let’s cross our fingers that your business won’t suffer the same fate, but by the same token there is no harm in having precautionary measures in place. A Shareholders Agreement coupled with additional foundation documents relating to the company will at least record measures to be implemented in the event of a dispute or potential litigation.
What aspects does a Shareholders Agreement normally cover
A Shareholders Agreement normally sets out:
- to cover the rights and obligations of the shareholders’ so that they know exactly what they are and are not able to do within the structure of the company;
- to record whether the shareholders are required to make financial or sweat equity contributions to the company (if any);
- to set out the type of business that will be performed by the company;
- to provide clarity going forward, as to the future financial arrangements of the company;
- to define the roles and responsibilities of the shareholders so that there will be no confusion as to what each shareholder is required to do;
- to record the of ownership and voting rights attached to the shares which each shareholder has;
- to provide direction as to the control and management of the company;
- to set out the method that will be implemented insofar as the sale of any shares in the company may be required;
- minority shareholders protections will be recorded for peace of mind;
- to record how disputes between shareholders (should any arise) be determined; and
- to protect the company, by inter alia such as constraining the shareholders to partake in competing businesses, or enticing members of staff to leave the company.
What are the benefits
- Custom fitted to suit the unique needs of your business
- Regulates all typical aspects required between shareholders and the company
- Protects the interests of the shareholders with respect to each other and the company
