Clients often ask where the shareholders` agreement, also known as a unanimous shareholders` agreement, is so long. After that, you prefer a three-page document. We invite customers to review the entire agreement with us and remove any terms they do not deem necessary. Once explained, very few terms are deleted. There are certain expenses that are paid by the company, but that benefit some people who participate in the management of the company. For example, maintaining error and omission insurance for directors is not a prerequisite, but a benefit for directors. Life insurance for people essential to the growth of the business is another obligation that can be imposed on the company by shareholders` agreement terms. Other provisions include directors who are paid (if any), confidentiality agreements for staff, and reimbursement of certain expenses. Maybe people are mis referring to these clauses. Purchase clauses in shareholder agreements have very specific meanings and uses. Although they are often used, they can be misused and cause problems between shareholders. Therefore, it is very important to correctly formulate the purchase clauses.
If you have one or more shareholders, you may wish to include a sale clause in your shareholders` agreement. Kahane Law Office in Calgary, Alberta, is able to explain, design and adapt purchase clauses according to clients` needs. Call again today: 403-225-8810. Buy Sell clauses vary widely. They can give all shareholders the opportunity to have equal rights to participate in majority sales. They may also make provisions for shareholders to buy back other shareholders. The diversity of these concepts is so vast that it is important to have an interview with your in-house lawyer. Companies that offer several types of shares sometimes have a series (class A, class B, class C, etc.) that can be worth different amounts of money. For example, 100 Class A shares may not be the same value as 100 Class B common shares. A purchase agreement (or contract of sale) is a much more complex legal document than a home purchase agreement….