In any business venture with multiple owners, the relationship between shareholders can be as critical to the success of the enterprise as its operations or market strategy. A shareholders agreement is a legally binding document that outlines the rights, responsibilities, and obligations of each shareholder. Yet, many businesses overlook this essential tool, often to their detriment.
Whether your company is a budding startup or a long-established firm, having a well-drafted shareholders agreement can provide clarity, prevent disputes, and safeguard your business’s future. Here, we discuss why every business with more than one shareholder should prioritize creating this vital document.
If you’ve ever shaken hands on a deal and later wondered whether that handshake would hold up in court, you’re not alone. I get asked about verbal agreements all the time – usually after a relationship has gone sideways. A text-message blowup. A former business partner who’s suddenly forgetful. A family member who insists they “never agreed to that.”
Here’s how verbal agreements actually work under BC law, and where people tend to get into trouble.
“Are we separated or divorced?”
It sounds like a simple question, but in British Columbia, the answer matters more than many people realize.
A lot of separating couples use the terms separation and divorce interchangeably. In reality, they’re legally distinct concepts. Confusing them can lead to serious misunderstandings about rights, obligations, and timing – particularly around property division, support, and future relationships.
In British Columbia (B.C.), corporate law aims to strike a balance between protecting the interests of majority shareholders who control a company and ensuring that minority shareholders are not unfairly treated or marginalized. While owning a minority stake in a company often means limited influence over major decisions, the Business Corporations Act (BCA) of B.C. provides several rights and protections to safeguard minority shareholders’ interests.
