(as of April 4, 2020)

Kay Law’s chief concern is the well-being of its clients and staff members. As such, we are fully supporting public health recommendations to reduce the spread of COVID-19.

As of March 17, 2020, we implemented a “physical distancing” policy and we adopted phone conference calls and video meetings until this unprecedented threat to pubic health subsides. These policies and procedures will continue in effect until further notice.

If you are attempting to deliver or pick-up any item from our office, please see the instruction sheet posted on our outside door or please phone us at 519-579-1220 and we will instruct you.

As an “essential service” provider, we are fully committed to providing legal services to our clients during this public health crisis. We are here to help you and your business. Please phone or email us. (519-579-1220 or reception@kaylaw.ca)

We appreciate your patience and understanding as we work within policies and procedures that help reduce the spread of COVID-19. Our thoughts and prayers are with all of you and we wish you safety and health.

Thank you.

Yours very truly,
Kay Law Professional Corporation

Thursday, November 14, 2019

Kay Law Blog 2 - Shareholder Agreements

Shareholder Agreements

A shareholder agreement is a contract between -co-owners/shareholders of a company that sets out the rules for how a company will operate.

It is advisable to have a shareholder agreement whenever you form a company with arms-length third parties.

The main topics covered in a shareholder agreement include:
  • Day-to-day operations
  • Financing the company (bank loans or shareholder advances to the company)
  • Signing authorities for bank accounts and contracts
  • How company money will be distributed
  • Meeting rules for directors, officers and shareholders
  • Rules that govern the transfer of shares (including right of first refusal; “piggy back” clauses; “shot gun” clauses; and death of a shareholder)
  • Disability, bankruptcy and divorce of a shareholder
  • Valuation of the shares of the company
  • Arbitration for any disputes
  • Non-disclosure, non-competition and non-solicitation

If a shareholder agreement is not entered into during “good times”, then if the business relationship takes a turn for the worse, it will be too late to implement the above rules. The result can be costly and lengthy court battles to determine a buy-out process and valuation.

Should you wish to discuss shareholder agreements, please contact Kay Law today.

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