Document background
The Amended and Restated Shareholders Agreement is utilized when an existing shareholders agreement requires substantial modifications due to changes in business circumstances, ownership structure, or corporate governance needs. This document is particularly relevant in the Canadian corporate landscape where both federal (Canada Business Corporations Act) and provincial corporate laws may apply. It completely restates the original agreement while incorporating necessary amendments, ensuring all current and future shareholders have a clear understanding of their rights and obligations. The agreement typically becomes necessary during significant corporate events such as new shareholder admission, change in share capital structure, modification of governance rules, or implementation of new exit mechanisms. It consolidates all previous amendments and the original agreement into a single, comprehensive document, making it easier to understand and enforce the current state of shareholder relationships.
