Document background
The Simple Stock Purchase Agreement Between Shareholders is a fundamental legal document used when one shareholder wishes to sell their shares to another shareholder or a new investor in a Canadian private corporation. This agreement is particularly relevant for small to medium-sized businesses where share transfers occur directly between parties without involving public markets. It can be used for complete or partial transfer of shareholdings and must comply with both federal legislation (such as the Canada Business Corporations Act) and provincial securities regulations. The document typically includes essential elements such as share price, payment terms, representations about share ownership, and closing conditions. It's designed to be more streamlined than complex commercial share purchase agreements while still providing necessary legal protections. The agreement should align with any existing shareholders' agreement and the corporation's articles and by-laws.
