If you have, or are planning to create, a corporation with more than one shareholder then it is a good idea to get a shareholder agreement in place. A shareholder agreement is a legally binding document that outlines the rights and responsibilities of the corporation’s shareholders and directors; think of it as a corporate nuptial agreement.Read This Story

Family owned businesses are often operated as closely held corporations in order to obtain various tax and liability advantages. Unfortunately, the ownership of these corporations is not always held equally, and an abuse of power over minority shareholders can easily occur. Sometimes this may be an attempt to “squeeze” a minority shareholder out of the company, while other times it can lead to directors suspending the declaring of dividends on your shares for various reasons including a shareholders intention to separate from their shareholder spouse.Read This Story