A shareholder agreement is a legal document that outlines the rights and responsibilities of shareholders in a corporation. If you are a shareholder in a corporation in Alberta, it is important to have a comprehensive shareholder agreement in place.

Why is a Shareholder Agreement Important?

A shareholder agreement is important for several reasons:

1. Protects Shareholders` Interests: A shareholder agreement protects the interests of shareholders by outlining their rights and obligations. It ensures that shareholders are treated fairly and equitably.

2. Sets Out Rules for Decision-Making: A shareholder agreement sets out the rules for decision-making in the corporation. This includes how decisions are made, who has the authority to make decisions, and what happens if there is a disagreement.

3. Helps Prevent Disputes: A shareholder agreement can help prevent disputes by clearly outlining the responsibilities and obligations of each shareholder. It establishes a framework for how disputes will be resolved if they do arise.

4. Provides Clarity for Succession Planning: A shareholder agreement provides clarity for succession planning. It outlines how shares will be transferred or sold if a shareholder passes away or wants to sell their shares.

Key Provisions of a Shareholder Agreement in Alberta

A shareholder agreement in Alberta should include the following key provisions:

1. Shareholder Rights and Obligations: This provision outlines the rights and obligations of each shareholder. It includes information on voting rights, share ownership, and the responsibilities of each shareholder.

2. Decision-Making: This provision sets out the rules for decision-making in the corporation. It includes information on how decisions are made, who has the authority to make decisions, and what happens if there is a disagreement.

3. Management: This provision outlines the roles and responsibilities of the management team. It includes information on the duties and responsibilities of the CEO, CFO, and other key executives.

4. Dispute Resolution: This provision outlines the process for resolving disputes if they arise. It includes information on arbitration, mediation, and other forms of dispute resolution.

5. Share Transfers: This provision outlines the process for transferring or selling shares. It includes information on how shares can be sold, who has the right of first refusal, and what happens if a shareholder passes away.

Conclusion

A shareholder agreement is a crucial document for any corporation in Alberta. It protects the interests of shareholders, sets out the rules for decision-making, helps prevent disputes, and provides clarity for succession planning. If you are a shareholder in a corporation in Alberta, it is important to have a comprehensive shareholder agreement in place to protect your interests.