Unanimous Shareholder Agreement (Start-Up) (Long Form) (CBCA, OBCA)

Summary

This precedent is a long form unanimous shareholder agreement drafted under the Ontario Business Corporations Act, R.S.O. 1990, c. B.16 ("OBCA") and the Canada Business Corporations Act, R.S.C. 1985, c. C-44 ("CBCA"), to be used in connection with a start-up or other emerging business with a small number of shareholders (generally no more than five), who are actively involved in the business. This practice note contains practical guidance, drafting notes, alternate clauses and optional clauses. A unanimous shareholder agreement is an agreement among all of the corporation's shareholders, which restricts the powers of the directors from managing or supervising the management of the business and affairs of a corporation. Unanimous shareholder agreements are typically used by shareholders to regulate the governance of the corporation and their corporate relationships. This type of agreement generally includes dispute resolution provisions that establish a mechanism to resolve any ...