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

We have implemented a “social distancing” policy, which entails limiting person-to-person contact. We have adopted phone conference calls and video meetings until this unprecedented threat to pubic health subsides. This policy is in effect from March 17, 2020 until April 6, 2020, when we will re-assess the situation.

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.

We are fully committed to providing legal services to our clients during this period. Please phone or email us. (519-579-1220 or reception@kaylaw.ca)

We appreciate your patience and understanding as we take time to adopt policies that keep everyone safe and healthy.

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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