High Potential Prospective Shareholders

Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

When a company's established leadership perceives significant potential in a particular individual, they may well decide that they wish to retain that individual's services for the long term. To achieve such a commitment it may be determined that the appropriate approach would be to offer that individual shares in the company, such that the particular individual makes a long term commitment to the company.

Nevertheless, potential by itself should not be sufficient, potential needs to lead to substantive and far reaching results. The current corporate shareholders need to insure that when the prospective shareholder is brought on-board that the particular individual is mentored and sufficiently incentivized so as to meet the expectations that are sought by the pre-existing shareholders. This has to be combined with specifications in the unanimous shareholders agreement or schedules thereto, such that the corporation is capable of enforcing compliance and expectations, and should the new shareholder fall significantly short of those prescribed expectations than the corporation has the means to reduce dividend payments or buy-back the issued corporate shares. Nevertheless, the key is to implemented the appropriate structure for the new shareholder, that includes highly specific legal documentation.

For knowledgeable and experienced legal representation in advancing your prospective or current shareholdings, while protecting your position as a shareholder, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.

What is a Unanimous Shareholders Agreement?

Click on for More Corporate and Shareholders Videos