Shareholders’ Agreement

What is a Shareholders’ Agreement?

A Shareholders’ Agreement is an agreement entered between the shareholders of an incorporated company on how the business of the company will be conducted and how the relationships between the shareholders will be governed with respect to the company. To learn about the differences between a sole proprietor, a partner, and a shareholder, read our blog post called Forms of Business.

Some of the matters that may be provided for in Shareholders’ Agreements are:

  • Management of the company;
  • Manner of appointing the board of directors;
  • Distribution of the profits of the company;
  • Methods of resolving conflicts between shareholders;
  • Transfer of shares or restriction on the transfer of shares; and
  • Withdrawal or death of a shareholder.

What are the advantages of having a Shareholders’ Agreement?

Having a well-drafted Shareholders’ Agreement ensures that the shareholders are fully aware of their rights and obligations with respect to the company and to the other shareholders, avoiding conflicts in the future and leading to a successful business venture. In addition, it can provide protection to both minority and majority shareholders as amending Shareholders’ Agreement requires unanimous consent of all the parties to the Agreement and it can provide mechanisms for resolving disputes between the shareholders.

What is the cost of drafting a Shareholders’ Agreement?

The cost of drafting a Shareholders’ Agreement is dependent on the complexity of the agreement. Please give us a call at 604.449.7779 so that we can discuss your requirements and give you an accurate estimate of the cost.

Why use M.J. O’Nions Lawyer & Mediator for writing my Shareholders’ Agreement?

We have over 17 years of experience in advising BC businesses and we have expertise and knowledge in drafting Shareholders’ Agreements. We will do this in a cost effective manner while providing high quality professional service to you so you can focus on managing your business.

How do I start the process of drafting my Shareholders’ Agreement?

You can start the process by filling out our contact form and one of our Vancouver business lawyers will give you a call within 24 hours or you can call us directly at 604-449-7779. We would be honoured to be of service.