Business Law & Shareholders’ agreements
At McWilliams Hewitt Evans, we provide services in all areas of Business Law. With over 40 years of experience, our dedicated team is here to provide reliable and results-driven legal solutions. Serving the entire Lower Mainland.
Comprehensive Business Law Services
Business Formation & Structuring
Incorporation, partnerships, joint ventures.
Contract Drafting & Negotiation
Protect your business with well-crafted contracts.
Mergers & Acquisitions
Ensure smooth transactions with strategic legal guidance.
Corporate Governance
Compliance with regulatory and fiduciary obligations.
Employment & Partnership Agreements
Compliance with regulatory and fiduciary obligations.
Commercial Litigation & Dispute Resolution
Protect your rights in legal conflicts.
What You Need to Know About Shareholder Agreements
When a company has multiple shareholders, there can be a lot of cooks in the kitchen. While these shareholders can provide pivotal funding and ideas to help companies grow, they can also bring complexities—like differing points of view and conflicts of interest. Shareholder agreements can help businesses avoid, or at least better navigate, some of these issues. Put simply, shareholder agreements are legal documents that clearly lay out the rights and responsibilities of shareholders to help prevent future issues. Shareholder agreements are meant to protect both the business and shareholders. But while they can simplify relationships, they also come with certain challenges and tax implications.
Key Elements of a Shareholder Agreement
Roles and Responsibilities
- Clearly defined roles for shareholders and management
- Decision-making processes that outline voting rights, quorums, and approval thresholds
- Procedures for appointing directors and handling board meetings
Share Transfer and Exit Strategies
- Restrictions on share transfers to protect the integrity of the ownership structure
- Buy-sell provisions that detail the process if a shareholder wishes to exit
- Mechanisms for valuing shares and managing changes in ownership
Dividend Policies and Profit Distribution
- Guidelines for dividend declarations and profit allocation
- Procedures for reinvestment and dispute resolution regarding financial decisions
Dispute Resolution Mechanisms
- Clear processes for mediating and resolving conflicts among shareholders
- Provisions for arbitration or legal action in the event of unresolved disputes
- Steps to mitigate potential impacts on business operations
Why You Need A Shareholders Agreement
A Shareholders’ Agreement sets clear expectations among business owners and helps prevent disputes before they arise. It outlines:
- Ownership Structure & Rights – Define share distribution, voting rights, and decision-making authority.
- Roles & Responsibilities – Clarify each shareholder’s duties and obligations.
- Dispute Resolution – Establish protocols for resolving conflicts efficiently.
- Exit Strategies – Plan for shareholder exits, share transfers, and succession.
- Protection of Minority Shareholders – Safeguard the rights of all stakeholders.
Protecting Your Business, Securing Your Future.
Starting and managing a business comes with many legal complexities. Whether you’re launching a new venture, bringing on investors, or restructuring your company, a well-drafted Shareholders’ Agreement is essential for protecting your interests and ensuring long-term success. At MHE Lawyers, we provide expert legal counsel in business law, helping entrepreneurs, startups, and corporations navigate the legal landscape with confidence. Whether you are drafting a will, managing an estate, or navigating probate, our experienced team offers clear, compassionate, and effective guidance every step of the way.
LOCATION
22722 Lougheed Hwy #2A, Maple Ridge, British Columbia