Document background
The Business Ownership Agreement serves as a foundational document for businesses operating in Canada, essential for establishing clear ownership structures and governance frameworks. This document is particularly crucial when multiple parties have ownership interests in a business, whether it's a startup, family business, or established corporation. It addresses key aspects such as ownership percentages, voting rights, profit distribution, and transfer restrictions, while ensuring compliance with both federal legislation (such as the Canada Business Corporations Act) and relevant provincial laws. The agreement helps prevent future disputes by clearly defining owners' rights and responsibilities, decision-making processes, and exit strategies, making it an essential tool for business planning and risk management.
