Can Minors Sign Shareholder Agreements In Canada?

A shareholder agreement is a document that generally sets out the rights, privileges, and obligations of a company's shareholders and the foundation for how a corporation will be established, managed, and run. As such, shareholder agreements are important to both the shareholders of a corporation and the corporation itself.

This is especially true in family-owned businesses, where the number of shareholders may increase from one generation to the next, and where effective shareholder agreements can help avoid conflict. Accordingly, many parents may consider having their child sign a shareholder agreement — but are minor children under 18 years old allowed to sign shareholder agreements?