Shareholder Agreements Calgary
A shareholder agreement establishes clear expectations between business owners, from decision-making and ownership to share transfers and future changes.
Strategic Tax & Business Solutions can help you understand the accounting and tax considerations behind your shareholder arrangements.
Defining the Relationship Between Shareholders
Shareholders may have different goals for the company, levels of involvement, financial contributions, or expectations about its future. Without agreed arrangements, these differences can become difficult to manage as the business develops.
A shareholder agreement can address areas such as ownership rights, responsibilities, decision-making, transfers of shares, and what happens when a shareholder wants to leave the company.
Establishing these expectations while the shareholder relationship is working well can provide a useful framework for handling future changes.
Shareholder Agreement Considerations
Share Ownership
Document the interests held by each shareholder and consider how ownership may change if additional shares are issued or existing interests are transferred.
Roles & Responsibilities
Establish an understanding of how shareholders participate in the business and the responsibilities associated with their respective positions.
Major Business Decisions
Set out how significant corporate decisions will be approached when shareholder approval or agreement is required.
Share Transfers
Address the circumstances under which shares can be sold, transferred, or offered to another shareholder or third party.
Shareholder Departures
Consider the financial and practical arrangements that may apply when an owner retires, resigns, becomes unable to participate, or otherwise leaves the company.
Death & Succession
Establish a framework for dealing with a shareholder’s interest following their death and consider how ownership may transition in the future.
Share Valuation
Determine how a shareholder’s interest may be valued when a purchase or transfer is required, including the financial information that may be used in the process.
Who Should Consider a Shareholder Agreement?
- Businesses owned by two or more shareholders
- Founders starting a company with business partners
- Family businesses with multiple owners
- Companies where shareholders have different levels of involvement
- Businesses preparing for a potential ownership transition
- Shareholders considering bringing another owner into the company
- Established companies reviewing outdated ownership arrangements
The Financial Details Matter
The terms of a shareholder agreement can affect how money moves between the company and its owners. Share purchases, dividends, compensation, business valuations, and changes in ownership can each create accounting and tax considerations.
Strategic Tax & Business Solutions can help you understand the financial information relevant to these arrangements and identify potential tax considerations that should be discussed with your legal advisors.
Plan for the Future of Your Ownership
Shareholder relationships can change as businesses grow, owners pursue new opportunities, or personal circumstances evolve. Having agreed principles in place can make those transitions easier to address.
Speak with Strategic Tax & Business Solutions about the financial and tax considerations that may be relevant to your shareholder agreement.