Don’t Delay – Create Your Shareholders Agreement Today!
When setting up a corporation, the focus is normally on establishing and growing the business, but it is also important where a corporation has more than one shareholder to have a shareholders agreement to establish a road map that both sets out expectations for management of the business and the relationship between the shareholders, and provides for how changes in circumstances will be dealt with.
It is important to have a shareholders agreement in place even when a corporation is relatively small in size and the shareholders are related, or are good friends.
Regardless of who the other shareholders may be, we have seen numerous situations where friends and family go into business together, the first few years are amicable, but something happens, for example a death of a shareholder, or a disagreement between shareholders over the management and governance of the corporation. Suddenly, the corporation and its shareholders find themselves in litigation, or if not litigation, a complete disturbance of the day to day affairs of the corporation. A well drafted shareholders agreement provides valuable protection and peace of mind for the corporation and its shareholders.
Click the link to access our nutshell summarizing these recent developments. >> Nutshell – The Importance of Shareholders Agreements – September 2017