Neufeld Legal P.C. 403-400-4092 Chris@NeufeldLegal.com
MULTIPLE SHAREHOLDER COMPANY
When an Alberta company has more than one shareholder, there needs to be a recognition that even though everyone might be on the same page today, things change (especially when it comes to matters involving money). For a multitude of reasons, the shareholders might have contradictory opinions as to the direction of the company, whether that divergence is of their own making or pushed upon them by forces beyond their control. For that reason the corporation needs to be appropriately structured to accomodate multiple shareholders and needs to be complemented by a unanimous shareholders' agreement to facilitate the shareholders progress through difficult and arduous days that lie ahead.
Having multiple shareholders investing and partaking in the direction and operation of a federally or provincially incorporated company has both its advantages and disadvantages. The key is to optimize those advantages, while curtailing the disadvantages and having contractual mechanisms put in place to deal with problems that could arise (though its impossible to predict the exact form of such problems and how they are to be dealt with). It is for that reason that legal counsel needs to be engaged, such that the company is properly structured from a legal perspective, together with having the appropriate contractual arrangements in place.
As such, when your business seeks the professional services of experienced legal counsel, whether when incorporating a new Calgary company or dealing with its ongoing corporate development, your business can look to the Calgary, Alberta law firm of Neufeld Legal P.C. Contact us at 403-400-4092 or via email Chris@NeufeldLegal.com.
Alberta Business Corporations Act
- important elements
136(1) A registered holder of shares entitled to vote at an annual meeting of shareholders, or a beneficial owner of shares, may
(a) submit to the corporation notice of any matter related to the business or affairs of the corporation that the registered holder or beneficial owner of shares proposes to raise at the meeting, referred to in this section as a “proposal”, and
(b) discuss at the meeting any matter in respect of which the registered holder or beneficial owner of shares would have been entitled to submit a proposal.
(1.1) To be eligible to make a proposal a person must
(a) be a registered holder or beneficial owner of the prescribed number of shares for the prescribed period,
(b) have the prescribed level of support of other registered holders or beneficial owners of shares,
(c) provide to the corporation his or her name and address and the names and addresses of those registered holders or beneficial owners of shares who support the proposal, and
(d) continue to hold or own the prescribed number of shares up to and including the day of the meeting at which the proposal is to be made.
(1.2) The information provided under subsection (1.1)(c) does not form part of the proposal or the supporting statement referred to in subsection (3) and is not included for the purposes of the maximum word limit set out in subsection (3).
* For the full statute, please click on this link. Nothing should be read in the abstract and specific legal advice is always recommended.