Canada: Shareholders

When a business is sold, whether through a share sale or an asset sale, the purchaser almost invariably demands restrictive covenants—such as a non-competition or non-solicitation agreement—from the selling shareholders or key principals.

In Malek v The King (2026 TCC 84), the Tax Court of Canada examined the Canada Revenue Agency’s (CRA) use of the net worth assessment method against a trucking corporation and its shareholder-managers.

Prior to Golden Spigot, the Court emphasized that section 324 “must be exercised judicially, on a principled basis, and in recognition of the reluctance of the Court to interfere lightly in the internal affairs of a company”, requiring more than a shareholder’s desire to monetize an investment in cases where partners were unable to negotiate a share purchase. By contrast, the Court in Golden Spigot accepted that the very nature of partners operating a closely-held business means that they would reasonably expect that dissolution of the company would result in circumstances of deadlock.

On May 14, 2026, the Canadian Securities Administrators (CSA) opened a 90-day comment period for a series of significant proposed amendments and changes to the issuer bid, take-over bid and beneficial ownership reporting regimes.

The Canadian Securities Administrators (CSA) have published proposed changes (the proposals) to the issuer bid, take-over bid and beneficial ownership reporting regimes...

The business corporations acts confer a clear right on shareholders to receive audited financial statements annually, unless they have expressly waived this right.

Shareholder disputes can destabilize corporate governance and erode company value when financial, strategic, or relational interests diverge.

When a shareholder of a private corporation dies, investment advisers are often among the first professionals families turn to. Understanding the key concepts of dealing with an estate which owns...

Lorsque l'un des actionnaires d'une société privée décède, les conseillers en placement comptent souvent parmi les premiers professionnels vers lesquels se tournent les familles.