Toronto Business Lawyers Advising Clients on Shareholders’ Agreements & Disputes 

A shareholders’ agreement is a contract entered into by some or all of the shareholders of a corporation. It governs the relationship between the parties and can also regulate how the company’s business is managed.

Shareholders’ agreements are important across all industries and in businesses of all sizes, from small start-ups to large national and international companies. Anytime a corporation has more than one shareholder, it is strongly advised to have a shareholders’ agreement in place.

As with any other legal contract, a shareholders’ agreement should be drafted by knowledgeable legal counsel. In the case of a shareholders’ agreement specifically, assistance should be sought from a lawyer with significant experience advising clients on corporate and commercial matters, including corporate governance and business succession. At Baker & Company, we have this experience, and we are here to help.

Why Baker & Company 

At Baker & Company, we have been providing high-quality, individually tailored legal services to small and large businesses in Toronto and the surrounding area for more than 30 years.

Our practice is built for today’s business environment. We provide responsive, strategic, and pragmatic business and legal solutions in an easily accessible location, ensuring our clients’ needs are met conveniently, efficiently, and with minimum disruption.

Our very own Mark G. Baker, LL.M. (Cornell) is the founder of Baker & Company and is certified as a Specialist in Corporate and Commercial Law by the Law Society of Ontario.

Why Do You Need a Shareholders’ Agreement? 

There is no obligation under Canadian or Ontario law to have a shareholders’ agreement in place when operating a corporation, however, there are numerous benefits to having one in place.

Among other things, shareholders’ agreements can:

• Regulate or restrict the powers of the directors to manage or supervise the management of the corporation;
• Offer protection for minority shareholders and majority shareholders;
• Control share transfers;
• Provide for a dispute resolution method; and
• Demonstrate stability to banks, investors, and other potential sources of funding.

Overall, a carefully drafted shareholders’ agreement will anticipate potential future problems and proactively outline ways of addressing them. This can ultimately help mitigate disputes down the road and save money and time where these disputes arise.

At Baker & Company, we continue to be recognized for our innovative work with Shareholder and Partnership Agreements.  We believe that a thoughtful and realistic framework to govern stakeholder relationships can effectively mitigate risk and promote years of corporate stability.

Shareholder Disputes 

Our corporate lawyers work hard to draft shareholders’ agreements in such a way that mitigates risk and decreases potential legal disputes.

In the event that you find yourself involved in a shareholder dispute, we can work with you to find the most efficient and cost-effective means of resolution. Since the cost of litigation can become onerous, our approach is always to first suggest other dispute resolution methods, such as negotiation, mediation and arbitration.

Whatever your preferred method of resolving corporate disputes is, we will help you find and implement the solution that suits you best.

For Advice on Drafting Shareholder Agreements and Assistance in Resolving Shareholder Disputes, Contact Baker & Company 

At Baker & Company we regularly review and update existing shareholders’ agreements, and draft new shareholders’ agreements for clients of all sizes and in all industries. We also represent clients in shareholder disputes. We are known for being the firm that handles the “complicated stuff”. We do not shy away from the most complex of legal scenarios and regularly help clients through their most challenging corporate law issues. Call us at 416-777-0100 or contact us online for a consultation.