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ARTICLE · 26 SEPTEMBER 2018

Corporate Governance 101: Increasing Minority Shareholder Voting Power

Certain shareholder agreements can help alleviate this lack of control and provide you with greater voting power.

CanadaCorporate/Commercial Law

If you are a minority shareholder you may feel a lack of control over corporate matters because majority shareholders, well, hold the majority of the voting rights. Certain shareholder agreements can help alleviate this lack of control and provide you with greater voting power.

Shareholder Agreements

Simply put, a shareholder agreement is a private contract between two or more shareholders of a corporation that supplements the corporation's governing statute(s) and constating documents (i.e. articles of incorporation and by-laws). A shareholder agreement, particularly where it is not a unanimous shareholder agreement, should never contradict or conflict in any way with the corporation's constating documents or governing statute(s). Instead, these documents should all speak to each other and form a consistent framework for effective corporate governance and operation.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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