Shareholders Agreements
The Business Corporations Act (Ontario) (the "Act") provides that shareholders may enter into a
unanimous shareholders agreement which, among other things, permits the shareholders to restrict
or regulate the management of a corporation. Generally, shareholders agreements are utilized to
protect the interests of the minority shareholders; document shareholders' mutual obligations and
liabilities; provide for transfers of control between generations; provide for planning in the event of
unexpected occurrences such as death or disability; and provide a means to resolve disputes
between shareholders.
There is no "standard form" of agreement that will meet the needs of every corporation. Each
agreement must be tailored specifically to the circumstances of the shareholders and the business of
the Corporation. There are however several provisions usually found in a shareholders agreement.
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