Disability clause important part of shareholders’ agreement
A well-drafted shareholders’ agreement should include provisions specifying what will happen in the event of disability, says Toronto business lawyer Anton Katz.
If there are no buyout rights or obligations, then nothing would happen to the ownership of the shares if a shareholder becomes disabled, says Katz, principal of Anton M. Katz Barrister & Solicitor.
“If they are a passive shareholder, it may be fine,” he tells AdvocateDaily.com. “However, if the shareholder is active and unable to perform their duties to the corporation, then a lack of a disability clause is problematic.”
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