If there is more than one shareholder, the shareholders should have an agreement to protect themselves and the company from shareholder disputes and situations beyond their control.
When a shareholder dies the surviving shareholder usually does not want the deceased shareholder’s family to be partners in the business. And every shareholder wants to ensure his family receives full and fair value. A well drafted agreement deals with this situation.
Also if a shareholder become unable to carry on business, bankrupt, sued or part of divorce proceedings there are substantial risks to the other shareholder and the business itself. An agreement is effective insurance to mitigate those risks.
Contact us for a legal review of the corporation, its minutes, issuance of shares and shareholder agreement to ensure the corporation is in compliance and the shareholders are protected.