Unanimous Shareholder Agreement

Quebec English Civil law Unannotated Long form

Unanimous Shareholder Agreement

  1. Documents

  2. Convention unanime entre actionnaires Convention unanime entre actionnaires

    B02500 -
    Quebec French Civil law Unannotated Long form

    $249.99

    $249.99

  3. Benchmarking Grid - Unanimous... Benchmarking Grid - Unanimous Shareholder Agreement

    B02401a -
    Quebec English Civil law Unannotated Short form

    $19.99

    $19.99

  4. Benchmarking Grid - Unanimous... Benchmarking Grid - Unanimous Shareholder Agreement (Long Form)

    B02501a -
    Quebec English Civil law Unannotated Long form

    $19.99

    $19.99

  5. Convention unanime entre actionnaires Convention unanime entre actionnaires

    B02400 -
    Quebec French Civil law Unannotated Short form

    $199.99

    $199.99

  6. Convention unanime entre actionnaires Convention unanime entre actionnaires

    B02500n -
    Quebec French Civil law Annoted Long form

    $299.99

    $299.99

  7. Grille d'analyse - Convention unanime... Grille d'analyse - Convention unanime entre actionnaires

    B02401 -
    Quebec French Civil law Unannotated Short form

    $19.99

    $19.99

  8. $19.99

  9. Unanimous Shareholder Agreement Unanimous Shareholder Agreement

    B02500a -
    Quebec English Civil law Unannotated Long form

    $249.99

    $249.99

  10. Unanimous Shareholder Agreement Unanimous Shareholder Agreement

    B02400a -
    Quebec English Civil law Unannotated Short form

    $199.99

    $199.99

Unanimous Shareholder Agreement

A shareholder agreement is an important component in the legal organization of a private corporation (recognized as a private issuer) whose share are held by more than one person. It allows shareholders to determine the rules governing the transfer of shares between them and with third parties and to exercise the rights and privileges attached to their shares.

 

There are generally three types of shareholder agreements, namely: i) an agreement that sets out only the buy-sell mechanisms of shares between shareholders as well as following the death of a shareholder, ii) a unanimous shareholder agreement that contains the general provisions governing the shareholder (e.g. interests, non-competition and non-solicitation undertakings, etc.), the withdrawal of a shareholder (whether voluntary or forced), the death of a shareholder, the valuation of the shares, and especially with regard to the governance of the corporation and any restrictions, in whole or in part, to the powers of the directors, and iii) a shareholder agreement that contains all the provisions of the unanimous shareholder agreement above, except with regard to restrictions on the powers of the directors.

 

In sum, the main difference between a unanimous shareholder agreement and a shareholder agreement (see template B02560) is that, in order to be valid, the unanimous shareholder agreement must limit or remove certain powers from the directors and must be signed by all the shareholders of the corporation, regardless of whether they are entitled to vote. Moreover, unlike a shareholder agreement, a unanimous shareholder agreement binds all future shareholders, on condition that there were duly advised of the existence of such an agreement. Lastly, it should be noted that a unanimous shareholder agreement is considered unanimous even if that word does not appear in the title.

Unanimous Shareholder Agreement

It is recommended using the long form template of the unanimous shareholder agreement (for the short form version, use template B02400) for any medium to large-sized business with more than two shareholders who are willing to be governed by such an agreement.

Unanimous Shareholder Agreement

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Book Value
0.01.04 Breach
0.01.05 Claim
0.01.06 Confidential Information
0.01.07 Control
0.01.08 CORPORATION
0.01.09 Death
0.01.10 Depositary
0.01.11 Disability
0.01.12 Dispute
0.01.13 Encumber or Encumbrance
0.01.14 Financial Year
0.01.15 Fixed Rate [OR Prime Rate]
0.01.16 Force Majeure
0.01.17 Fully Diluted Basis
0.01.18 Incorporating Act
0.01.19 Initial Public Offering
0.01.20 Intellectual Property
0.01.21 Law
0.01.22 Legal Representatives
0.01.23 Loss
0.01.24 Ordinary Course of Business
0.01.25 Ordinary Resolution
0.01.26 Person
0.01.27 Regulation 45-106
0.01.28 SHAREHOLDER
0.01.29 Shareholder-Employee
0.01.30 Shares
0.01.31 Special Resolution
0.01.32 Subsidiary
0.02 Entire Agreement
0.03 Applicable Law
0.04 Unanimous Shareholder Agreement
0.05 Non-Compliance
0.05.01 Severability
0.05.02 Substitute Provision
0.06 Miscellaneous
0.06.01 Cumulative Rights
0.06.02 No Waiver
0.06.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.06.04 Cross-References
0.06.05 Gender and Number
0.06.06 Headings
0.06.07 Accounting Standards
1.00 CONSTITUTION OF CORPORATION
1.01 Purpose
1.02 Head Office [OR Registered Office]
2.00 GOVERNANCE OF CORPORATION
2.01 Transfer of Powers
2.02 Board of Directors
2.02.01 Composition
2.02.02 Liability Insurance
2.02.03 Board Meetings
a) Quorum
i) Minimum Number
ii) Sole Director
iii) Opening
b) Calling Meetings
i) Frequency
ii) Procedure
iii) Content of Notice
iv) Urgent Matter
2.03 Officers
2.03.01 Composition
2.03.02 Liability Insurance
2.04 Banking
2.04.01 Bank Accounts
2.04.02 Authorized Signatories
2.04.03 Intermingling of Accounts
2.05 Corporate Records
2.05.01 Registers
2.05.02 Share Register
2.05.03 Books
2.05.04 Access
2.06 Financial Statements
2.06.01 Appointment
2.06.02 Accounting Standards
2.07 By-laws
2.08 Signatories for Contracts
2.09 Liability and Property Insurance
3.00 RULES GOVERNING SHAREHOLDERS
3.01 Powers of SHAREHOLDERS
3.01.01 Unanimous Vote
3.01.02 Special Majority
3.02 Liability Insurance
3.03 SHAREHOLDER Meetings
3.03.01 Annual Meeting
3.03.02 Special Meeting
3.03.03 Place of Meetings
3.03.04 Proxies
a) General
b) Models
3.03.05 Quorum
a) Minimum Number
b) Sole Shareholder
c) Opening
d) Adjournment
e) Second Adjournment
3.03.06 Calling of Meetings
a) Notice of Meeting
b) Transmission
c) Content of Notice
d) Urgent Matter
3.03.07 Procedure
3.03.08 Written Resolution
3.03.09 Conflict of Interest
3.03.10 Authorization
3.03.11 Alienation or Encumbrance on Property
3.04 Pre-emptive Right
3.04.01 Issuance
3.04.02 Exception
3.04.03 Procedure
3.04.04 Partially Exercised
3.05 Dividend Policy
3.06 Continuous Disclosure to SHAREHOLDERS
3.07 Adhesion to Agreement
3.08 Contribution in Time
3.08.01 General Contribution
3.08.02 Employment Agreement
3.09 Monetary Contributions
3.09.01 Cash Calls
a) General Rule
b) Default by a SHAREHOLDER
c) Terms
i) Voting and Participating Shares
ii) Non-voting and Non-participating Shares
d) Security or Suretyship
i) Undertaking
ii) Indemnification
iii) Adjustment
3.09.02 Withdrawal of Contributions
3.10 Profit-Sharing
3.11 Expenses
3.12 Exercising Voting Rights
3.13 Loyalty
3.13.01 Conflict of Interest
3.13.02 Business Opportunities
3.14 Limit to Holdings (only if 3.01.01 c) applies)
3.15 Encumbrances
3.16 Transfer of Shares
3.16.01 Authorization Required
3.16.02 Share Certificates
4.00 DUTIES AND OBLIGATIONS OF SHAREHOLDERS
4.01 Confidential Information
4.01.01 Undertaking
4.01.02 Duration of Undertaking
4.01.03 End of Agreement
a) Request for Return
b) Destruction
4.01.04 Penalty
4.02 Intellectual Property
4.02.01 Acknowledgement
4.02.02 Use
4.02.03 Notice
4.03 Indemnification
4.03.01 Scope
4.03.02 Procedure
4.03.03 Bad Faith
4.04 Non-Competition
4.04.01 Undertaking
a) Definition
b) Scope
4.04.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
4.04.03 Reasonableness of Clause
4.05 Non-Solicitation of Personnel
4.05.01 Scope of Undertaking
4.05.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
4.06 Non-Solicitation of Clients
4.06.01 Undertaking
a) Definitions
b) Scope
4.06.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
4.07 Further Assurances
5.00 WITHDRAWAL OF A SHAREHOLDER
5.01 Voluntary Withdrawal
5.01.01 Application
5.01.02 First Option to Purchase
a) Notice
b) Good Faith
c) Consideration
d) Proportion
e) Response
5.01.03 Second Option to Purchase
a) Notice
b) Proportion
c) Response
5.01.04 Condition Precedent
5.01.05 Refusal
a) Disposing of Remaining Shares
b) Different Terms
5.01.06 Closing
5.01.07 Terms of Payment
a) General
b) Payment of Consideration
c) Interest
d) Expiry of Due Date
e) Prepayment
f) Forfeiture of Term
g) Shares in Escrow
i) Pledged as Security
ii) Default
h) Restrictions to Cash Flow
i) Reimbursement and Discharge
j) Promissory Note
k) Reimbursing Legal Fees
l) Solidary Liability
5.01.08 Penalty
5.02 Forced Withdrawal
5.02.01 Application
5.02.02 Triggering Events
5.02.03 First Option to Purchase
a) Entirety of Shares
b) Proportion
c) Time Limit
5.02.04 Second Option to Purchase
a) Entirety of Shares
b) Proportion
c) Time Limit
5.02.05 Applicable Rules
a) Deemed Sale
b) Authorization
5.02.06 Calculating Start Dates
a) Bankruptcy, Incapacity and Seizure
b) Criminal Sentence
c) Resignation, Withdrawal or Dismissal
d) Absentee SHAREHOLDER
e) Change in Control and Competition
f) Disability
5.02.07 Closing
5.02.08 Sale Price
5.02.09 Terms of Payment
a) Consideration
b) Other Terms
c) Assignment to CORPORATION
5.03 Dispute ("Shotgun" Procedure)
5.03.01 Application
5.03.02 Procedure
a) Definition
b) Offer to Purchase
c) Restrictions on Time Limits
5.03.03 Financial Guarantees
a) Definition
b) Letter of Credit
c) Proof of Release
d) Rejection of Offer
5.03.04 Time Limit
5.03.05 Deemed Acceptance
5.03.06 Closing
5.03.07 Rejection of the Offer
a) Presumption of Purchase
b) Pricing and Terms
c) Proportion
5.03.08 Penalty
5.03.09 End of Dispute
5.04 Conditions Relating to a Sale
5.04.01 Application of Agreement
5.04.02 Release, Discharge and Indemnification
5.04.03 Resale or Re-issuance of Shares
a) Difference of Price
b) Obligations of CORPORATION
5.05 Pre-Authorized Transfers
5.05.01 Personal Holding Corporation
a) Entering into Agreement
b) Control
5.05.02 Trust
5.06 Acquisition of Shares by CORPORATION
6.00 TAKE-OVER BID
6.01 Undertaking
6.01.01 Control
6.01.02 Required Content
6.02 Procedure
6.02.01 Application
6.02.02 Notice of Acceptance and Disclosure of Offer
6.02.03 Options of Minority Shareholders
6.02.04 Notice to Depositary
6.02.05 Amendment of Offer
7.00 DEATH OF A SHAREHOLDER
7.01 Procedure
7.01.01 Application
7.01.02 Sale Subject to Condition Precedent
a) Deemed Sale
b) Proportion
c) Completion of Sale
7.01.03 Overriding Transmission
7.01.04 Non-Application of Subsection 7.01.03
7.02 Terms of Payment
7.02.01 General
7.02.02 Initial Instalment
a) Sufficiency of Insurance Proceeds
b) Insufficiency of Insurance Proceeds
c) Declaration of Dividend
d) Allocation and Tax Election
e) No Insurance Proceeds
7.02.03 Balance
7.02.04 Interest
7.02.05 Expiry of Due Date
7.02.06 Prepayment
7.02.07 Forfeiture of Term
7.03 Protection
7.03.01 Shares Placed in Escrow
a) Share Certificates
b) Default by Surviving Shareholder
7.03.02 Restrictions to Cash Flow
7.03.03 Repayment and Release and Discharge
7.03.04 Promissory Note
7.03.05 Fees and Disbursements
7.03.06 Solidary Liability
7.04 Further Assurances
7.05 Two or More Deaths
7.06 Acquisition of Shares
7.06.01 Conditions
7.06.02 Value
7.06.03 Capital Dividend Account
7.06.04 Personal Guarantee
7.06.05 Terms of Payment
7.06.06 Default by CORPORATION
8.00 VALUATION OF SHARES
8.01 General Rule
8.01.01 Sale Upon Death
8.01.02 Voluntary Withdrawal
8.01.03 Forced Withdrawal
8.01.04 Acknowledgement of Different Values
8.02 Initial Value
8.03 Current Value
8.03.01 Reassessment by SHAREHOLDERS
8.03.02 Dissent
8.04 Alternative Valuation Method
8.05 Prohibition
8.06 Administrative Reassessment
8.06.01 Liability
8.06.02 Options
9.00 FINANCING
9.01 Life Insurance
9.01.01 Undertaking
9.01.02 Consent of SHAREHOLDERS
9.02 Obligations Regarding Premiums
9.02.01 Payment
9.02.02 Proof of Payment
a) By the CORPORATION [OR SHAREHOLDERS]
b) Advance (only if corporation pays under 9.02.01)
9.02.03 Prohibition and Additional Protection
9.02.04 Death of a SHAREHOLDER
a) Death Benefits
b) Loss of Insurance Proceeds
9.02.05 Depositary
9.03 Transfer of Life Insurance Policies
9.03.01 Change of Owner/Beneficiary
9.03.02 Sale of Shares
9.03.03 End of Agreement
9.04 Disclosure
9.05 Excess Coverage
9.06 Tax Elections
10.00 DEPOSITARY
10.01 Appointment
10.02 Remuneration
10.02.01 Fixed Fees
10.02.02 Additional Remuneration
10.03 Changing Depositary
10.03.01 Resignation
10.03.02 Removal
10.03.03 Replacement
10.04 Duties of Depositary
10.04.01 Custody
10.04.02 Compliance
10.04.03 Liability
10.04.04 Sale Upon Death
10.04.05 Power of Attorney
10.04.06 Dispute Between SHAREHOLDERS
10.04.07 Rights Relating to Shares
10.05 Duties of SHAREHOLDERS
10.05.01 Share Certificates
10.05.02 Additional Certificates
10.06 Performance Bond
10.07 Limitation of Liability
10.08 End of Agreement
10.09 No Ownership
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.02 Force Majeure
11.02.01 Limitation on Liability
11.02.02 Duty
11.02.03 Right to Terminate
11.03 Suspension of Rights
12.00 GENERAL PROVISIONS
12.01 Notices
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
a) Written Notice
b) Meeting
c) Legal Proceedings
d) Protective Measures
12.02.02 Mediation
a) Process
b) Settlement
c) Arbitration [OR Legal Proceeding]
12.02.03 Arbitration Procedure (if V1 of 12.02.02 c) applies)
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Confidentiality
e) Hearing
f) Ruling
g) Costs
h) Supplementary Rules
12.03 Choice of Forum
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission and Signature
12.08 Language
13.00 TERMINATION
13.01 Without Notice
13.01.01 Triggering Events
13.01.02 Exceptions
13.02 Liquidation of CORPORATION
13.02.01 Appointment of a Liquidator
13.02.02 Duties of Liquidator
a) Liquidation and Distribution
b) Powers
13.02.03 Remuneration
13.02.04 Obligations of Liquidator
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Initial Term
15.02 Survival
16.00 SCOPE

SCHEDULE A1 [A2, A3] – EXCERPT OF A RESOLUTION OF SHAREHOLDER A [B, C]
SCHEDULE B – EXCERPT OF A RESOLUTION OF CORPORATION
SCHEDULES C1 [C2, C3] – DECLARATION OF SHAREHOLDER A [B, C]
SCHEDULE 2.02.02 – LIABILITY INSURANCE - DIRECTORS
SCHEDULE 2.03.02 – LIABILITY INSURANCE - OFFICERS
SCHEDULE 3.02 – LIABILITY INSURANCE - SHAREHOLDERS
SCHEDULE 3.10 – EMPLOYMENT INCOME OF SHAREHOLDER-EMPLOYEES
SCHEDULE 4.04.01 – NON-COMPETITION - TERRITORY
SCHEDULE 4.06.01 A – NON-SOLICITATION - CLIENTS
SCHEDULE 4.06.01 B – NON-SOLICITATION - PRODUCTS AND SERVICES
SCHEDULE 8.01.01 – VALUATION OF SHARES - SALE UPON DEATH
SCHEDULE 8.01.02 – VALUATION OF SHARES - VOLUNTARY WITHDRAWAL
SCHEDULE 8.01.03 – VALUATION OF SHARES - FORCED WITHDRAWAL
SCHEDULE 9.01.01 – LIFE INSURANCE POLICIES
SCHEDULE 10.01.01 – DECLARATION OF DEPOSITARY

Unanimous Shareholder Agreement

  1. Documents

  2. Convention unanime entre actionnaires Convention unanime entre actionnaires

    B02500 -
    Quebec French Civil law Unannotated Long form

    $249.99

    $249.99

  3. Benchmarking Grid - Unanimous... Benchmarking Grid - Unanimous Shareholder Agreement

    B02401a -
    Quebec English Civil law Unannotated Short form

    $19.99

    $19.99

  4. Benchmarking Grid - Unanimous... Benchmarking Grid - Unanimous Shareholder Agreement (Long Form)

    B02501a -
    Quebec English Civil law Unannotated Long form

    $19.99

    $19.99

  5. Convention unanime entre actionnaires Convention unanime entre actionnaires

    B02400 -
    Quebec French Civil law Unannotated Short form

    $199.99

    $199.99

  6. Convention unanime entre actionnaires Convention unanime entre actionnaires

    B02500n -
    Quebec French Civil law Annoted Long form

    $299.99

    $299.99

  7. Grille d'analyse - Convention unanime... Grille d'analyse - Convention unanime entre actionnaires

    B02401 -
    Quebec French Civil law Unannotated Short form

    $19.99

    $19.99

  8. $19.99

  9. Unanimous Shareholder Agreement Unanimous Shareholder Agreement

    B02500a -
    Quebec English Civil law Unannotated Long form

    $249.99

    $249.99

  10. Unanimous Shareholder Agreement Unanimous Shareholder Agreement

    B02400a -
    Quebec English Civil law Unannotated Short form

    $199.99

    $199.99