Document background
A Simple Shareholder Agreement is essential for any Canadian corporation with multiple shareholders, whether newly formed or existing. This document should be implemented when establishing a corporation or when new shareholders join an existing business. It serves as a foundational document that outlines the relationship between shareholders, protecting both majority and minority interests while ensuring smooth corporate governance. The agreement must comply with Canadian federal laws, particularly the Canada Business Corporations Act, and relevant provincial legislation. It typically includes provisions for share transfers, voting rights, management participation, dispute resolution, and exit mechanisms. The document's "simple" nature makes it particularly suitable for small to medium-sized businesses with straightforward ownership structures, while still providing comprehensive shareholder protection.
