Forcing an Exit - Shotgun Clause

July 25, 2019
For the first time in the Toronto Raptor’s 24-year journey, the team made history by advancing to the NBA finals. In 1995, the vision of the founding members, John Bitove and Allan Slaight, was to establish a new mark for the city of Toronto by creating an organization with the ultimate goal of winning an NBA championship. In this instant case, their shareholder agreement included a shotgun clause.

Planning for the Death of a Shareholder

July 24, 2019
As an entrepreneur it is best practice to plan for the unexpected. Shareholders do not always remain with the business indefinitely. A shareholder may leave, sell or pass away.

What to Consider When Selecting the Corporation's Share Attributes

June 26, 2019
When drafting articles of incorporation, one is required to outline the share structure of the corporation. This article seeks to outline some basic requirements, and subsequently the importance of choosing a share structure that is most beneficial for the corporation.

When Should a Company Declare Dividends?

May 26, 2015
When declaring dividends it is important to be aware that your company may be susceptible to a reassessment by the Canada Revenue Agency (“CRA”). This is something you want to avoid, therefore knowing when reassessment can be triggered can be important to your business.

Fundraising: Finding and Managing “Retail” and “Accredited” Investors

April 13, 2015
I performed some searches yesterday to identify recent publicly-listed technology companies via TMX Money and I found that technology companies and biotechnology companies are starting to take a major share of new listings on the venture exchange. For a growing company in this space, this is good news.

When Fundraising, “Know” Your “Accredited Investor”

March 17, 2014
When raising money in Ontario or anywhere in Canada for your startup company, you fall under the scrutiny of the rules of the Securities Act and related National Instruments that set the rules on the nature and type of disclosure that you need to provide to your potential investors.