Featured Blog Posts
BLOG CATEGORIES
What Is a Corporate Minute Book and Why Do You Need One?
What is a corporate minute book and why you need one?
A corporate minute book operates as the official record of your corporation’s activities. Any and all corporate transactions that involve your corporation should be documented in this book. Below are some documents that must be included:
Articles of incorporation
Corporation by-laws
Registers of directors, officers, and shareholders’
Resolutions of the directors and officers
Notices and registrations filed with the registry
Share certificates
Meeting minutes
Shareholders’ agreement
Why Every Canadian Business Needs a Shareholder Agreement
Why Every Canadian Business Needs a Shareholders’ Agreement
In this article, we’ll cover the following topics:
Why shareholders’ agreements are useful
The legal power of shareholders’ agreements
The shotgun clause
Default provisions
Shareholders’ agreements are notoriously frustrating documents, mainly because they are long – in some cases, 60 pages long – and loaded with confusing legalese. Yet they are among the most important documents in any business owner’s arsenal, and having competent counsel on your team can help to eliminate some of that confusion.
Don’t believe me? Here’s a story that will change your mind…
Key Elements of a Strong Shareholders’ Agreement
Key Elements of a Strong Shareholders’ Agreement
A shareholders’ agreement can go a long way in helping set up your business for long-term success. Thinking about unpleasant situations is never fun but it will help in the long run if and when these situations arise. Putting in place a shareholders’ agreement will equip you and your fellow shareholders with the necessary tools to tackle those situations. Here are some elements that should be included in all agreements.
Process for appointing directors and their duties
This section should outline how directors will be appointed. Some examples include each shareholder appointing a director, each class of shares appoints a director, or appointing them through a majority vote. Potential investors may also want a representative on the board, so that must be considered. The responsibilities of the directors should also be laid out clearly.
What is a Shareholders' Agreement | Why They're Essential To The Success Of Your Business
What is a Shareholders' Agreement | Why They're Essential To The Success Of Your Business
These agreements are some of the most notorious agreements because they are very challenging for clients to actually get around and sign. They're very long. There can be 15 to 60 Pages. They contain a lot of language that is very difficult for a non-practitioner to understand and they just seemed like something that just gets pushed to the end of the list. It's one of those things that you know is good for you but you just don't want to get done. It's kind of like going to the dentist. So let's take a look at these agreements because while they're not all that sexy they're extremely important and they can be essential to the success of your business over the long haul.
Why you need a Shareholder’s Agreement
Why you need a Shareholder’s Agreement
Growing your small business is exciting, but it can just as easily come to an end if the proper steps aren’t taken to protect yourself and the business. A great way to do this is by putting together a shareholders’ agreement. This can help ensure that the shareholders are on the same page, while protecting all members and the business itself.
What is a shareholders’ agreement?
A shareholders’ agreement is a formalized agreement between most if not all of the shareholders of a corporation. This agreement outlines how the business should operate, as well as the rights and responsibilities of the shareholders. A shareholders’ agreement is not the same as company articles or bylaws, which are mandatory, and a shareholders’ agreement is optional. The shareholders’ agreement is a private agreement that members of the public do not have a right to inspect, unlike the company’s articles.