Free Shareholder Agreement

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Duration of the Agreement

Frequently Asked Questions
When should my Shareholder Agreement end?The Shareholder Agreement can end when all shareholders agree to end it, or on a specific date. The option to end it 'by shareholder agreement' should only be used in the following circumstance:
  • where there are a relatively small number of shareholders,
  • where the Corporation is not thinking of taking on new shareholders, and
  • where the shareholders have a good working relationship.
Even one disgruntled shareholder could cause significant problems for the corporation by refusing to terminate the agreement, even where it would in the best interest of the corporation to do so.

If there are a relatively large number of shareholders, or where the corporation is trying to increase the number of shareholders, or if the potential exists for conflict among the shareholders, then the Shareholder Agreement should have a specific end date.

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