The shareholders’ agreement is a contract which aims to regulate and structure the relations between the shareholders, but also to provide for their rights and obligations towards the company. This contract allows you to foresee the consequences arising from the occurrence of various events likely to cause conflicts (departure of a shareholder, death of a shareholder, sale / transfer of shares, etc.) and thereby protects your company’s interests in the event of a conflict.
A good shareholders’ agreement will anticipate many situations that may arise in the life of a business, thereby protecting the interests of your company in the case a disagreement.
Regulating the transfer of shares
The agreement will typically regulate the transfer of shares, as this is frequently a source of conflict between shareholders.
For example, you should plan for the departure of a shareholder.
Implement practical solutions
Without a shareholders’ agreement, the applicable laws will intervene to settle disputes. This means that shareholders will have to refer to the law, to an arbitrator or even to the courts to resolve their issues.
However, these solutions won’t always be catered to the specific needs of your business. With a shareholders’ agreement, you can establish practical solutions to conflicts that may arise, which will be better suited to your business.
This kit includes:
– A standard shareholders’ agreement if you are individuals, hold the same class of shares and wish to have the same rights and obligations, including :
- Clauses related to share : value of shares, share transfer, right of first refusal / first offer and pre-emptive clauses ;
- Clauses regulated decision-making : ordinary resolutions, special resolutions ;
- Planning for the departure of a shareholder, voluntary or forced ;
- Ensuring exclusivity : confidentiality, non-compete, and non-solicitation clauses.
– The reviewing of your document by one of our lawyers, as provided for in the mandate.
*This kit is suitable for a company with 2 to 5 shareholders and wishing identical rights and obligations between them.
*If you have a corporate shareholder, do not hold the same class of shares or do not have the same roles or level of involvement in the company, you need a customized shareholder agreement. Please contact us.
To learn more about this subject, we invite you to read our articles WHAT ARE THE ESSENTIAL PROVISIONS OF A SHAREHOLDERS’ AGREEMENT IN CANADA? and WHY SHOULD YOU HAVE A SHAREHOLDERS’ AGREEMENT IN CANADA ?