Should you choose to incorporate, a Shareholder Agreement for investors who have injected capital into the corporate vehicle is recommended. Shareholder Agreements require an understanding of not only the business of the corporation, but the basis upon which you include investors in the ongoing management of the corporation. This requires decisions concerning control and the sharing of decision-making and responsibilities. A Shareholder’s Agreement identifies and distinguishes between active and passive investors. It also establishes dispute resolution mechanisms and appropriate methods for share purchases and sales as between shareholders and with third parties; whether consensual or amidst conflict.
In circumstances in which you choose not to incorporate, but in which there are others to be involved in the ongoing operation of the business, a number of other business models should be considered. Our Team has the experience to help our clients choose the right business model for their situation.
Once the business is functioning, our Corporate Team will work with you to address any differences of opinion that arise amongst shareholders or partners as the case may be and we will help with the resolution of disagreements and misunderstandings. The dispute resolution mechanism in any governing document can be utilized in this process.