Corporate Law Shareholders Agreement Problem...

[xnyjyh]

Jurisdiction: Calgary, Alberta, Canada

Our problem is about adding a shareholder to our corporation.

We incorporated 8 months ago and never got started yet in our business, we have have made no income. We were forced to hault due to finances.

So, we took a different approach by finding an investor to complete our venture and to be able to financially start this business.But now since we were incorporated 8 months ago, is this going to be hard to add him as a share holder? We are a 'Private' corporation not a 'Public' Corp.

How can we get by this to add him as a 3rd Shareholder with ease?

We have no ties to this investor. We just met him accidently and he was very interested in our business. He wants to write a cheque to our corp as fast as he can as he's very keen, but he wants an agreement from us to give to his lawyer first to get the 'go ahead' so we can get started again.

What isthe simplist and fastest way to achieve this?

Thank you

 

[dee_dub]

By "private corporation" I assume you mean you have shareholders, but your shares are not listed on a stock exchange.

Selling shares to your new investor is not hard. You issue some shares and you sell them to him.

But you don't seem to know a lot about corporate law, and you're at the point where you're going to need to make some decisions. What kind of shares does your corporate structure allow you to sell? You'll need to figure out whether he'll have voting rights, if so how much control he's going to have, what kind of income his shares entitle him to, will he have the right to sell them to a 3rd party or do you want to keep ownership limited to him...

So get a corporate lawyer.