Blog Bite: When and how should you execute an effective unanimous shareholders' agreement?

June 16, 2016

This article posted on our partner site discusses the importance of executing a unanimous shareholders’ agreement (USA) to deal with matters of particular significance to the shareholders of a corporation. The USA should be drafted to address foreseeable issues (e.g., how directors will be appointed and removed from the board, how the business will be funded in the corporation’s early years, how the valuation of transferred shares will be determined) as well as provide flexibility for unforeseeable issues (i.e., through negotiated fair provisions). If shareholders wish to “entrench” certain rights and obligations, they should adopt a USA, which requires unanimous shareholder approval before it can be changed.

This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!

Shareholders Agreement
Canada (General)

Written by Alina.