Document background
The Investment And Shareholders Agreement is a crucial document used when a company is receiving new investment while establishing or updating the framework for shareholder relationships. Typically employed in private equity, venture capital, or strategic investment scenarios in Canada, it combines elements of an investment agreement with a shareholders' agreement. The document addresses key aspects such as investment terms, share pricing, governance rights, share transfer restrictions, and exit provisions, while ensuring compliance with Canadian federal and provincial regulations. It's particularly important for growing companies seeking capital, protecting both investor interests and existing shareholder rights while establishing clear corporate governance structures. The agreement must align with the Canada Business Corporations Act, applicable provincial securities laws, and other relevant Canadian legislation.
