Document background
The Incorporation Agreement is a vital document used when establishing a new corporation in Canada, whether under federal or provincial jurisdiction. This agreement is typically employed when two or more parties wish to formally document their arrangements for incorporating and operating a new business entity. The document serves as the foundation for the corporate structure and governance framework, detailing crucial elements such as share ownership, management rights, and operational procedures. An Incorporation Agreement is particularly important as it provides clarity and certainty regarding the rights and obligations of all initial shareholders, helps prevent future disputes, and ensures compliance with relevant corporate legislation. The agreement must align with either the Canada Business Corporations Act (for federal incorporations) or the applicable provincial corporations act, making it essential to consider the specific jurisdictional requirements when drafting and executing the document.
