Author name: Hadri Law

Understanding the Hierarchy of Corporate Governance Documents in Ontario In Ontario, corporate governance is shaped by several key documents: the articles of incorporation, corporate bylaws, and any shareholders’ agreement. Each serves a distinct legal purpose, but when conflicts arise between them, business owners often wonder which document takes precedence, especially between a shareholders’ agreement and

Many business owners in Ontario incorporate their companies and begin operations without ever putting a shareholders’ agreement in place. This oversight can lead to significant legal and financial risks, especially when disagreements or unexpected changes arise. While Ontario’s Business Corporations Act (OBCA) offers some default rules, it does not address the unique needs and expectations

Business owners in Ontario often hear about the importance of having a shareholders’ agreement, but fewer understand how it differs from a buy-sell agreement. Although the two documents are closely related, and often included within the same legal framework they serve distinct purposes in managing ownership and succession planning. Understanding how these agreements function under

Shareholder agreements are essential to the governance of a corporation, especially in closely held or private companies. One of the most critical yet often overlooked sections of a shareholders’ agreement is the valuation clause the provision that determines how a departing shareholder’s interest is valued and bought out. In Ontario, having a clear and enforceable

Understanding the Enforceability of Confidentiality and Non-Compete Clauses in Ontario In Ontario, confidentiality and non-compete clauses are common features in employment agreements, partnership contracts, and the sale of a business. Their main purpose is to safeguard business interests. However, not every restrictive covenant is enforceable. Whether a clause holds up in court depends on how

A shareholders’ agreement is one of the most important governance documents in any corporation. It defines the rights, responsibilities, and relationships between shareholders, and helps prevent internal disputes before they arise. But just like the business itself, this agreement should evolve over time. At Hadri Law, we frequently advise clients on when and why their

Understanding the Role of a Shareholders’ AgreementA shareholders’ agreement is often described as a private contract, but in practice it’s much more than that. It serves as a roadmap for how a corporation will be run, setting out in advance how shareholders make decisions, transfer shares, resolve disputes, and prepare for succession. By establishing these