Document background
The Company Share Agreement is a fundamental document used in Canadian corporate governance to establish and regulate the relationship between shareholders and the corporation. This agreement becomes essential when companies need to formalize share ownership arrangements, whether for initial company formation, bringing in new investors, or restructuring existing share arrangements. The document must comply with both federal legislation (particularly the Canada Business Corporations Act) and provincial securities laws. It typically includes detailed provisions for share transfers, voting rights, dividend distributions, and dispute resolution mechanisms. The agreement is particularly crucial for private corporations where shares are not publicly traded and require careful control over ownership transfer and shareholder rights.
