Document background
A Joint Venture And Shareholders Agreement is a crucial document used when two or more parties wish to establish a joint business venture while clearly defining their relationships as shareholders in Canada. This agreement is particularly relevant when parties want to combine resources, expertise, or market access while maintaining separate corporate identities. The document addresses both the establishment of the joint venture and ongoing shareholder relationships, incorporating Canadian corporate law requirements, securities regulations, and industry-specific compliance needs. It typically includes detailed provisions for governance, capital contributions, profit sharing, operational management, and exit strategies. This type of agreement is essential for both domestic Canadian ventures and international partnerships involving Canadian entities, requiring careful consideration of federal and provincial regulations, especially when dealing with regulated industries or foreign investment restrictions.
