Shareholder Agreement Lawyer in Toronto for Startups
Starting a company with co-founders? A shareholder agreement is the single most important legal document your startup will ever sign. It defines who owns what, how decisions get made, and what happens if a founder leaves. Without one, you are leaving your business exposed to disputes that can destroy years of work overnight.
At For Founders Law, we draft shareholder agreements specifically for Canadian startups — at a fixed fee, with no hourly surprises.
Why Every Startup Needs a Shareholder Agreement
Canadian corporate law provides some default rules when shareholders disagree, but those defaults rarely work in a startup's favour. A well-drafted shareholder agreement replaces those defaults with terms that actually reflect your business and your relationships.
Without a shareholder agreement, you have no clear answer to questions like: What happens if a co-founder stops contributing? Can a shareholder sell their shares to a stranger? Who makes the call on major business decisions? How do you value and buy out a departing founder?
What We Include in Every Shareholder Agreement
Equity Structure & Share Classes
We define each founder's ownership stake, share classes (common vs. preferred), and any special rights attached to each class.
Vesting Schedules
Vesting ensures that founders earn their equity over time. If someone leaves after six months, they should not walk away with 50% of the company. We set up vesting schedules that protect the founders who stay and build.
Decision-Making & Governance
Who can hire employees? Who approves major expenditures? We define voting thresholds, board composition, and reserved matters so that day-to-day operations run smoothly and big decisions require proper consensus.
Transfer Restrictions & Right of First Refusal
We include drag-along and tag-along rights, rights of first refusal, and restrictions on share transfers to keep ownership among people who are actually building the business.
Dispute Resolution
If co-founders disagree, the agreement provides a structured path to resolution — mediation, arbitration, or shotgun clauses — before it ever reaches a courtroom.
Exit & Buyout Provisions
What happens when a founder wants to leave, passes away, or becomes disabled? We build in valuation methods and buyout mechanisms so transitions happen fairly and without chaos.
IP Assignment
We ensure that all intellectual property created by founders is assigned to the company, not held personally. This is critical for fundraising and for protecting the business.
Our Fixed-Fee Approach
Most law firms bill shareholder agreements by the hour, which means the cost spirals every time you ask a question or request a revision. We quote a fixed fee upfront — you know exactly what you are paying before we start drafting. Revisions and questions are included.
Who We Work With
We work with early-stage startups, pre-seed and seed-stage companies, SaaS founders, e-commerce brands, and digital businesses across Toronto and all of Canada. Whether you are two co-founders splitting equity 50/50 or a team of four with an investor on the cap table, we have drafted agreements for your situation.
Book a Free Consultation
Do not wait until a dispute forces the conversation. Book a free 20-minute consultation to discuss your shareholder agreement. We will outline what you need, provide a fixed-fee quote, and get your founders' agreement in place — so you can focus on building.