TORONTO SHAREHOLDERS' LAWYER

Owning shares in a privately-held company is a far more rigorous endeavour than owning shares in a publicly-traded company, whether its on the TSX or NYSE. Having practised law for many years in New York City / Wall Street, I became highly familiar with the challenges facing shareholders in both publicly-traded and private company spheres, and the private sector clearly imposes far more challenges upon its shareholders.

The principal challenge associated with holding shares in privately-held companies is their lack of liquidity (i.e., the absence of a stock market to buy and sell shares), which necessitates the creation of specific shareholder arrangements. This is principally done through a shareholders agreement, which not only provides a contractual framework for operating the business and making key decisions, but creates procedural buy-sell mechanisms, including death & disability arrangements, put & call options, shotgun provisions, piggy-back rights, insolvency and marital break-up requirements. The shareholders agreement thus provides a viable mechanism for resolving challenging shareholder situations; nonetheless, disputes do arise and than the lawyer takes on a more assertive role in resolving a specifically defined point of contention.

For knowledgeable and experienced legal representation in establishing shareholder arrangements and, where necessary, resolving shareholder disputes, contact Toronto shareholder lawyer Christopher Neufeld at Chris@LawyerTorontoBusiness.com or 416-887-9702.