Document background
A Unanimous Shareholder Agreement is essential for privately-held corporations in Canada where shareholders wish to establish detailed arrangements for corporate governance and shareholder relations. This document becomes particularly important when transitioning from a simple corporate structure to a more complex one, when bringing in new shareholders, or when formalizing the relationship between existing shareholders. It must comply with either federal legislation (CBCA) or provincial corporate laws, depending on the corporation's jurisdiction of incorporation. The agreement typically covers share transfer restrictions, management rights, dispute resolution mechanisms, and other crucial aspects of corporate governance. It's a powerful tool that can override certain corporate bylaw provisions and transfer specific powers from directors to shareholders, making it fundamental for protecting shareholder interests and ensuring smooth corporate operations.
