Minority shareholders of private companies may have substantial protections even in the absence of a shareholders’ agreement.
The rights and protections of minority shareholders are generally detailed in the relevant Business Corporations Acts and therefore can vary from jurisdiction to jurisdiction. However, the concepts are very often similar and referring to the right ACT can answer some very basic questions.
For example, HERE is an excellent, albeit dated, summary of minority shareholder rights in Ontario. The Canadian Business Corporations Act is very similar in our experience, as are many of the other Canadian Provinces.
Wondering how to demand a Shareholders Meeting or inspect the company’s books and records? Read the Act and there is likely an answer.
Posted by Scott Sinclair, Range Advisors
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