Shareholder Agreement Guide | Canada

A Shareholder Agreement protects the interests of a corporation's shareholders and minimizes the risks of share ownership. This Canadian template contains a buy-sell or "put" option.

• This is a Canadian legal form which can be used anywhere in Canada except Quebec.
• The Shareholder Agreement establishes the obligations of the shareholders and the corporation to each other, and sets out any restrictions on share transfers or the issue of new shares.
• The remaining shareholders have a right of first refusal to acquire the shares of a departing shareholder, before the shares can be offered to a third party.
• A departing shareholder also has a buy-sell or 'put' option, which would require the remaining shareholders to purchase his/her shares. The put option is available only after the departing shareholder has been unsuccessful in finding a third party purchaser for a period of 6 months.
• The template contains buy-sell options for both an assured buy-out and a mandatory or 'shotgun' buy-sell.
• If a shareholder dies, the surviving shareholders have the option to buy the deceased shareholder's shares, failing which they must be purchased by the corporation.
• The Shareholder Agreement can serve to avoid unnecessary conflict by having the owners agree on management issues and exit strategies at the outset.

Research the issues you need to consider when preparing a shareholder agreement for your company with this Shareholder Agreement Checklist, which covers:

• The share capital of the corporation.
• Composition and powers of the board of directors.
• The corporation's dividend policy.
• Circumstances when additional shareholder capital may be required.
• Procedures for issuing new shares and transferring existing shares.
• Buy-sell provisions governing departing shareholders.

A shareholder agreement is an important legal document for the corporation and its investors. Use the Checklist to make sure you don't leave out any essential items, then purchase the right Shareholder Agreement to suit your needs.

Lease a commercial building and adjoined land in Canada to a business tenant with this comprehensive downloadable lease template.

• The lease is for the land and buildings already on the location, or to be constructed at a later date, which are solely at the risk of the tenant.
• This is a net lease, and the tenant is responsible for paying all taxes, charges, rates, expenses, and outgoings related to the premises.
• The tenant must maintain comprehensive liability insurance, all risks physical damage insurance, boiler and pressure vessel and machinery breakdown insurance, in forms and amounts satisfactory to the landlord.
• The tenant shall not request local improvements from the municipality without the landlord's consent.
• The tenant grants the landlord a security interest over all of its present and after acquired personal property, as collateral security for its performance of its obligations under the lease.
• The landlord is not required to maintain, repair or rebuild the leased premises if they are damaged or destroyed.
• This legal template can be used in most Canadian provinces and territories. A different form may be required for Quebec.

Canadian employers, write an Employment Agreement for a new employee with this easy-to-use template.

• The contract covers relevant points of the employment including:
  • Duties, responsibilities and job description of the position being filled by the employee;
  • Starting salary, and any other compensation being paid;
  • Benefits and expense accounts;
  • Assessment or probationary period to be completed by the employee;
  • Procedure for termination of the employee with cause.
• Available in MS Word format and fully editable to meet your specific needs.
• Intended to be used only within Canada.

Put together an Information Circular for a shareholder meeting for a Canadian corporation with this customizable template.

• The circular must be distributed to the shareholders of a corporation prior to a shareholder meeting.
• It sets out details of all the business to be dealt with at the meeting.
• It also describes the procedure for appointing a proxy, for shareholders who are unable to attend in person but still wish to vote.
• The Information Circular gives the shareholders a chance to review and consider the matters to be put before the meeting.
• Available in MS Word format.
• Intended to be used only in Canada.