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Shareholder Agreements – Part Six
Shareholder Agreements: 6) Defaulting shareholders A shareholder agreement can provide remedies in the event that a shareholder defaults in his or her obligations to the company, or if the circumstances of a shareholder change fundamentally. For example, if a shareholder quits his or her job with the company, goes bankrupt, or becomes physically or mentally [...]
Located in: Corporate and Commercial Law
Shareholder Agreements – Part Five
Shareholder Agreements: 5) Shotgun clause A simple and effective way to facilitate a buy out is to add a “shotgun clause” to an agreement. Under a shotgun clause, one shareholder offers to buy the other shareholder’s shares. The other shareholder can either accept the offer or buy out the offeror’s shares on the same terms. [...]
Located in: Corporate and Commercial Law
Shareholder Agreements – Part One
If your company has more than one shareholder, you should have a shareholders agreement. While they can be costly and a pain to negotiate, they anticipate problems, prevent misunderstandings and generally pay for themselves many times over when difficulties arise. In this eight-part blog on shareholder agreements, we will cover areas such as financing, distribution [...]
Located in: Corporate and Commercial Law
When Should I Incorporate?
At some point, it may be worth incorporating your business. Here’s what you’ll need to consider. 1. Limited liability As a general rule, shareholders are not responsible for corporate debts. If a corporation goes bankrupt, its shareholders will lose no more than their investment (unless the shareholder has provided personal guarantees for the corporation’s debts). [...]
Located in: Real Estate Law
The Structure of Your Business
The three basic types of business structure are a sole proprietorship, a partnership and a corporation. A sole proprietorship is easy to form – you simply start doing business. The business is owned and operated in your own name or through a trade name. Business income and personal income are treated the same for tax [...]
Located in: Real Estate Law
