Set out the rights and obligations of the shareholders of a Canadian company with this template Shareholder Agreement with Put Option for use in Canada.
A Shareholder Agreement establishes the obligations of the shareholders and the corporation to each other, and sets out any restrictions on share transfers or the issue of new shares. Provisions of this Agreement include:
- Right of first refusal provisions for the remaining shareholders to acquire the shares of a departing shareholder, before they can be offered to a third party.
- A departing shareholder also has a buy-sell or "put" option, which would require the remaining shareholders to purchase his/her shares. The put option is available only after the departing shareholder has been unsuccessful in finding a third party purchaser for a period of 6 months.
- Buy-sell options for both an assured buy-out and a mandatory or "shotgun" buy-sell.
- If a shareholder dies, the surviving shareholders have the option to buy the deceased shareholder's shares, failing which they must be purchased by the corporation.
This
Canada Shareholder Agreement with Put Option is provided in MS Word format, and is fully customizable.
