LAWCRESTShareholder agreements lawyer in Mississauga
When two or more people own a business, a clear shareholder agreement protects the business and the relationship. Lawcrest helps founders, families and investors across Mississauga and the GTA agree on ownership, decisions and exits before problems start.
The best time to decide how owners make decisions, leave the business and settle disputes is before any conflict begins.
416-830-3369What is a shareholder agreement?
A shareholder agreement is a private contract between the owners of a corporation. It sets out how the business will be run, how decisions are made, what happens when an owner wants to leave, and how disagreements are resolved.
In Ontario, an agreement signed by all shareholders can also be a unanimous shareholder agreement, which can limit the powers of the directors and move them to the shareholders.
Every business relationship starts with good intentions. A written agreement turns those intentions into clear rules, so everyone knows where they stand.
- Founders and partnersAgreeing on ownership, roles and decision-making from the start.
- Family businessesPlanning for succession and fair treatment among relatives.
- Businesses with investorsSetting out investor rights, protection and exit terms.
Agreements we prepare and review
If your situation is not listed, call us. We will tell you plainly how we can help.
Founder agreements
For the people starting the business together, covering ownership, roles and contributions.
Equal-partner agreements
For businesses split evenly, with a clear way to break a deadlock.
Family business agreements
Rules for ownership, involvement and succession among family members.
Investor agreements
Terms for bringing in investors, including their rights and protections.
Employee shareholders
Equity for key employees, with vesting and buy-back terms.
Joint venture corporations
Agreements between companies that jointly own a new corporation.
Updating existing agreements
Reviewing and amending an older agreement so it matches your business now.
Buy-sell and exit agreements
Clear terms for when an owner leaves, retires, dies or wants to sell.
When should you speak to a lawyer?
The best time is at the start, but it is never too late to put an agreement in place.
- You are starting a business with partnersAgree on the rules before money and effort are at stake.
- An investor wants to come inTheir terms will affect everyone who already owns shares.
- A partner wants to leaveYou need clear terms for how and at what price.
- Owners disagree on directionA proper process can resolve a deadlock without damaging the business.
- You are planning for the futureRetirement, death, disability and sale should all be addressed.
What a shareholder agreement covers
Every business is different, but strong agreements deal clearly with these key points.
- Ownership and sharesWho owns what, and how new shares can be issued.
- Decision-makingWhich decisions need a majority and which need everyone.
- Directors and managementWho sits on the board and who runs day-to-day operations.
- Selling or transferring sharesRights of first refusal, tag-along and drag-along rights.
- Buy-sell and exit termsHow an owner can leave, and how the shares are valued and paid for.
- Deadlock and disputesA clear process, such as mediation or arbitration, when owners disagree.
- Protecting the businessConfidentiality and restrictions on competing with the business.
What happens without an agreement?
Without a shareholder agreement, the default rules in corporate law apply. These rules may not fit your business. The majority owner may be able to make most decisions, a minority owner may have little protection, and there may be no clear way to leave or to resolve a deadlock.
Disputes then often end up in court, which is expensive, slow and public. A good agreement is usually far cheaper than a single dispute.
How we work with you
A clear process, with no surprises about where your agreement stands.
Consultation
You tell us about the business and the owners. We listen, ask the right questions and explain how we can help.
Understand the goals
We learn what each owner wants and expects, and the risks that worry you most.
Agree the key terms
We set out the main business terms in plain language so everyone can confirm them early.
Draft the agreement
We prepare a clear agreement that reflects those terms and fits corporate law.
Review and negotiate
We refine the draft with the owners, and each owner can obtain their own legal advice.
Sign and implement
We finalize and sign the agreement, and update the corporate records so everything is consistent.
How we price our work
We discuss costs at the start, so you can plan and decide with confidence. We also explain who we act for.
Drafting a new agreementTailored to your business
A complete agreement written for your owners, structure and goals.
Reviewing an existing agreementPlain-language advice
We explain what your current agreement says, flag the risks and recommend updates.
Negotiating between ownersFinding common ground
Guidance and negotiation to reach terms that all owners can accept.
Independent legal adviceImportant for fairness
Each owner may have different interests. We explain who we act for, and we recommend that each owner consider getting their own lawyer.
Already in a dispute with a co-owner?
If the relationship has already broken down, there may still be options. Which ones depend on your agreement, your share of the business and what has happened.
- Review of your rightsUnder your agreement and under corporate law.
- Negotiation or mediationOften the fastest and cheapest way to resolve a disagreement.
- Buyout or exitA fair way for one owner to leave the business.
- Court remediesIn some cases, remedies for unfair treatment of a shareholder may be available.
What to bring to your consultation
Do not worry if you do not have everything. Bring what you can, and we will tell you what else is useful.
- Articles of incorporation and by-laws
- Your minute book and share register, if you have them
- Details of all owners and who owns how much
- Any existing agreements between the owners
- Recent financial statements or a summary of the business
- A list of the questions or concerns each owner has
Why clients choose Lawcrest
You are trusting us with the future of your business. This is how we earn that trust.
Plain-language advice
No jargon. You understand each term before you agree to it.
Cost clarity
We discuss our fees at the start so you can decide with full information.
Practical drafting
Agreements that fit your real business and are easy to follow.
Confidential
What you tell us is protected by solicitor-client privilege.
Responsive
Your questions get answers, and you hear from us as your file moves.
Fairness focus
We encourage terms that all owners understand and can live with.
Regulated lawyers
Lawcrest is a professional corporation regulated by the Law Society of Ontario.
Local and accessible
Meet us at our Matheson Blvd office in Mississauga, or arrange a call.
Frequently asked questions
Still not sure? Call 416-830-3369 and we will talk it through.
Do I really need a shareholder agreement?
If you own a business with anyone else, it is strongly recommended. It sets clear rules for decisions, exits and disputes, and costs far less than resolving a dispute later.
What is a unanimous shareholder agreement?
It is an agreement signed by all shareholders that can limit the powers of the directors and transfer them to the shareholders. It is commonly used in privately owned businesses.
What is a shotgun clause?
It is a buy-sell mechanism where one owner offers a price and the other must either buy or sell at that price. It can resolve a deadlock, but it can favour the owner with more money. We explain the pros and cons.
What if the owners disagree on something?
A good agreement sets out a process, such as discussion, mediation and then arbitration, so disagreements are resolved without destroying the business.
Can the agreement be changed later?
Yes, if all the required parties agree. We recommend reviewing the agreement as your business grows or when ownership changes.
Can one lawyer act for all the owners?
It can create conflicts of interest. We explain who we act for, and we recommend that each owner consider getting independent legal advice.
How long does it take to prepare one?
Simple agreements can often be ready in a couple of weeks once the key terms are agreed. More complex ones take longer. We give a realistic timeline at the start.
Is my information confidential?
Yes. Your communications with us are protected by solicitor-client privilege.
Testimonials
They made a complicated legal matter feel understandable. We always knew what was happening, why it mattered and what came next.
Carolean
Worker
We always knew what was happening, why it mattered and what came next. They made a complicated legal matter feel understandable.
Elena
Founder of a company
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