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Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 29714
Experience:  30 years experience representing clients .
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Is there a problem or issue with a common share certificate

Customer Question

Is there a problem or issue with a common share certificate being issued without an executed shareholders agreement? The company in question is trying to claim that there is no shareholders agreement in place which to my understanding is a moot point.
Submitted: 7 years ago.
Category: Business Law
Expert:  Loren replied 7 years ago.
A Shareholder agreement, while advised, is not required. In the absence of a shareholder agreement, the by-laws of the corporation and the relevant provisions of Business Corporation Act will control those issues.

Likewise, the corporation and its shares of stock are not rendered improper or illegal by the absence of a shareholder agreement.
Customer: replied 7 years ago.
So basically if I hold a certificate - I won those shares and interest in the company?
Expert:  Loren replied 7 years ago.
I was not aware this is a Canadian question. I will opt out.

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