Drag Along, Tag Along Clause for Shareholder Agreement

Minority Shareholder Rights in Ontario Private Companies is a 20-page paper that examines and clarifies the rights and protection afforded to minority shareholders of private companies under the Ontario Business Corporations Act.

• The paper was written by an Ontario corporate lawyer who is an expert in the area of shareholder rights.
• Each of the relevant sections of the Business Corporations Act is discussed, with an explanation of its terms and what it means to you as a shareholder.

Provide for special majority rights for shareholders in an Ontario company with this downloadable Unanimous Shareholders Agreement.

• Special majority rights include a right of first refusal on minority share transfers (less than 10%), right to carry along minority shareholders on a sale of the company, and a call option to purchase the minority interest on death, disability, termination or change of control of the minority shareholder.
• Minority shareholders have piggy-back rights for change of control transactions, and a put option to sell their interest on death, disability, termination or change of control of the minority shareholder.
• Minority shareholders must waive certain dissenting rights.

Both majority and minority shareholders are provided for under the terms of this Ontario Unanimous Shareholder Agreement. Buy the form, download it, and easily tailor it to your company's needs.