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Deleted user
posted 3 years ago
Two shareholder agreements in parallel
I am looking to receive an investment from an accelerator (investor A) and from a private investor (investor B). I have draft shareholder agreements with both investors A and B. My lawyer is telling me that I cannot have two shareholder agreements in parallel. When a shareholder agreement comes after an existing one, it should either invalidate the first or amend it. Is that correct? Can I have two shareholder agreements in parallel?
Country
  • Canada
Fields:
  • Contract
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Deleted user
posted 3 years ago
There is no problem with having two shareholders according to the articles 2.1 and 3 of Canada Business Corporation Act (CBCA) that specify the number of individuals in a corporation and also the directors of a corporation that is usually elected between shareholders, but the essential point that has a concern about is the number of shares of each shareholder because if it's become more than 100% the shareholder agreement is suspended.