The TK Advisor - The TK Group Ottawa Blog about Life Insurance, Critical Illness Insurance, Wealth Management and Estate Planning

Shareholder Agreement !

Why should you review your shareholder agreement ? Ask a person who is in court because the agreement was not well structured . In my opinion majority of business owners neglect to review their agreements and are staring down a barrel of a loaded gun .There are also those that do not think Shareholder Agreement is  necessary. Get the best advice from your corporate lawyer , accountant and a qualified insurance broker when drawing up a agreement . I am working on regular basis to help business people review and identify holes inside their agreements . No I am not a lawyer but have over the last 29 years been part of many corporate discussions that iinvolve agreements and completing insurance audits to ensure their life policies are not going to create a massive tax problem .

Shareholder agreement could cost you a lot of money !

We instruct people to get a shareholder agreement and I still think it is a must to have one. Make sure you take the time to craft a agreement that works for you . When it is not properly drafted , by a lawyer who is not a true specialist or one that just wants to give you a boiler plate version , it can cost you thousands of dollars when a dispute occurs . Ask your advisers questions so you completely understand what the legal terms are and how they will affect you . When relationship between shareholders sour they will go back to the agreement and that is not a good time to learn that the agreement you have is inadequate .