Shareholder Agreements

Many people start a business with a friend because it is easier to share responsibility and risks with someone you know and trust. However, when business issues become a factor in a friendship, as a consequence, both the friendship and the business may suffer. To avoid that and to ensure effective control of the company and certainty of roles and duties each shareholder will have in the company, we recommend putting your intentions in writing.

We Can Help You Avoid Problems With Your Business Partners In The Future

A shareholders' agreement confirms arrangements you and your friend, as business partners, agreed to in the first place. It will:

  • Include an exit strategy in the event of disagreement about the conduct of business operations or the division of profits; and
  • Have mechanisms to allow you and you partners to part ways on fair basis.

These strategies and mechanisms are important for resolving disputes between shareholders; they save time and help avoid costly litigation. They are also important for resolving disputes with minority shareholders that the company may acquire along the way.

Protect All Your Shareholders By Implementing Shareholders' Agreement

There are various minority shareholders rights and remedies in the corporate legislation to protect minority shareholders, giving them tools to fight for their interest. This causes the majority of Shareholders' Disputes, which are common and very disruptive. Good faith and sound business decisions is a defence, but getting involved in a lawsuit to make use of that defence is very expensive for everyone involved, time consuming and damaging to the company.

Protect Your Business. Get Legal Advice Today

Contact Granville Law Group and schedule a free, 30-minute consultation with our lawyers. Call us at 604-757-9385 or arrange a meeting using our online contact form.