BURLINGTON SHAREHOLDER LAWYER Shareholder Arrangements

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 Burlington shareholder lawyer Christopher R. Neufeld at 905-631-3662 or Chris@BurlingtonBusinessLawyer.ca.

Burlington Business Lawyer Christopher R. Neufeld is a lawyer with the law firm of Feltmate Delibato Heagle LLP and is admitted to practice law in both Ontario (Canada) and New York (U.S.A.). Christopher's legal practice focuses primarily on business law, in particular corporate commercial transactions. The law firm of Feltmate Delibato Heagle LLP is located in the western Greater Toronto Area (GTA), with law offices in Burlington and Oakville, in immediate proximity to downtown Toronto, Mississauga, Hamilton, Brampton, Milton, Guelph and Kitchener Waterloo. COPYRIGHT 2009.

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