The Importance of Shareholders' Agreements

Contact Neufeld Legal PC for your incorporation legal work at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

Shareholders' agreements are essential in multi-shareholder situations, especially when they are drafted correctly by an experienced lawyer. There is so much that can go into a shareholders' agreement, that knowing what to include and exclude can go a long way to building a lasting business relationship amongst the shareholders and the corporation. It also tends to provide more effective exit strategies for the shareholders, as by establishing a base-line exit strategy, it allows the shareholders to more effectively negotiate (since there is a base-line, pursant to which the shareholders are contractually mandated to exit upon invocation and pursuant to the shareholders' agreement, there is a greater willingness to attempt to reach a negotiated settlement).

Shareholders' agreements provide a plethora of exit strategies, including provisions for a strategic shot gun, put-call, piggy-back, drag-along, first right of refusal and default (together with death and disability for human shareholders). By selecting the appropriate exit provisions and thereafter drafting them to the objectives of the shareholders and their future, the underlying fundamentals for the business and its shareholders is that much better situated. And it is with that realization that the shareholders are able to get the most of their investment in the corporation and its business.

As such, formulating, drafting and negotiating a shareholders' agreement with Neufeld Legal PC, will enable you to profer the benefits from the professional services of an experienced corporate lawyer who understands the importance of drafting and implementing the appropriate shareholders' agreement. So if you are looking to enter into a shareholders' agreement for your company, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or via email at Chris@NeufeldLegal.com.

* Please note that the flat rates associated with a standard incorporation are strictly limited to a basic incorporation (federal, Ontario, Alberta) and does not involve other matters that might be corrollary to the incorporation process or might be atypical for a standard incorporation, including but not limited to related legal or tax advice, engagement with other governmental bodies or professional bodies, licensing, drafting of pertinent business contracts (i.e., shareholders' agreements), negotiations, disputes, financing, coordination with other companies or other legal structuring.

Contact us via email at chris@neufeldlegal.com or call 403-400-4092 / 905-616-8864.