Sample Shareholders Agreement Canada

Under this shareholders` agreement, the person completing the form can define the responsibilities of the directors and shareholders – and, overall, the important business elements of the business. This shareholders` agreement will contribute to the establishment of a structure for this company. (a) Shareholders may mortgage their shares as security for all loans they have taken out, provided that the pledge holder enters into a written agreement, provided that the pledge creditor is subject to all the terms of this Agreement. PandaTip: This section ensures that shareholders have the same expectations about when they can get money from the company and ensure that distributions do not compromise the company`s financial needs. This shareholders` agreement can be used when a company is created and before it begins to assume normal day-to-day business activities – or vice versa if that company has never had a shareholders` agreement and needs to better establish the company`s management structure. It can also be used in the event of a merger between two companies (if two or more companies merge and continue as a company) or in the event of a lawsuit (when a company moves to another jurisdiction). This shareholders` agreement outlines the company`s fundamental responsibilities to shareholders: things such as when the company needs to present a budget, when its directors should meet, and how decisions can be made by the directors. This Agreement, dated [date of Contract], is entered into between the following persons, who represent all current shareholders of [CORPORATION] (“Corporation”),: PandaTip: The distribution or resale of shares externally may involve a large number of legal provisions to which this Agreement is not suitable, which is why this clause is important. 1.19 “this Agreement”, “here”, “here”, “below”, “below”, “below” and similar expressions refer to this Agreement and not to any section, subsection, paragraph or other part of this Agreement. List of all parties to this Agreement, including their names, addresses and number of shares held in the company.

(c) In the event of death or permanent disability (defined as inability to fulfil one`s obligations), 10% of all unassed shares are transferred immediately to the estate of the deceased. The Company, if requested from the estate of the deceased, will purchase all the unshakable shares of the estate of the Deceased at a price corresponding to the last valuation of the Company agreed in accordance with Schedule B, provided that adequate key insurance is available for this purpose. Otherwise, the estate of the deceased may offer the shares under this agreement. You must use a shareholders` agreement if you enter into a business relationship with other parties based on holding shares in a company. In a shareholders` agreement, you can appoint shareholders, directors and senior officers of the company….

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