A Shareholders’ Agreement is a contract between two or more shareholders which sets out rights and protections for the shareholders, including voting rights, restrictions on the transfer of shares and protection for each shareholder, despite the distribution of shares amongst the individuals or corporations.

If your business is starting to grow and you realize that you will need outside financing to continue your expansion, it is highly recommended to prepare a Shareholders’ Agreement to detail the rights and limitations of your investor as well as your control of the corporation. In fact, investors often recommend such an agreement to protect their own investments.

Most importantly, a Shareholders’ Agreement will alleviate disputes amongst shareholders within the company, most commonly while a shareholder is in the process of existing from the company, selling their shares to a third-party, or safeguarding shares should a shareholder go through a divorce, mental illness, or death.

Amskor Law’s attention to detail and passion to protect its clients, makes the firm the first choice for shareholders across Ontario.