Shareholders Agreement
A shareholders agreement fills the critical gaps left by the Ontario Business Corporations Act's default rules. Without one, disputes over decision-making, share sales, and exits are resolved by statutory defaults that rarely match the founders' intentions. This template covers governance thresholds, ROFR, drag-along, tag-along, the optional shotgun clause, and dispute resolution — the provisions Ontario corporate lawyers consider essential.
The Corporation
Provide the corporation's details and share structure.
Use the exact legal name including the corporate designation (Inc., Ltd., Corp.).
Most small corporations have only common shares. Multiple share classes are used when different rights (dividends, voting, liquidation preference) are needed for different groups.
1 / 5 — The Corporation
This template is provided for informational purposes only and does not constitute legal advice. Laws change — have a licensed Ontario lawyer review any agreement before signing.
Why use this template?
- Fills OBCA default gaps on voting, dividends, and exit mechanics
- ROFR prevents unwanted third parties from becoming shareholders
- Drag-along enables a clean acquisition exit without holdout problems
- Optional shotgun clause provides certainty in founder deadlocks
- Dispute resolution mechanism avoids costly Superior Court litigation
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$499 flat feeA shareholders agreement is the most important document your company will ever sign. One ambiguous clause can cost you the business. Have a lawyer review it before anyone signs.
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