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Tag: Shareholders Agreement

Kickboxer landing a high kick on an opponent in a ring, illustrating a minority shareholder taking on majority control
Legal Guide

The Oppression Remedy: The Minority Shareholder’s Strongest Card, Explained

What can you actually do when you own a minority stake in a company and the people in control start squeezing you out?

More than most minority shareholders think.

Ontario law gives you something called the oppression remedy, and courts have called it the broadest shareholder protection in the common-law world. It doesn’t require proving anyone broke a contract. It protects your reasonable expectations, and when those are violated, a court can order almost anything, including forcing the majority to buy you out at fair value.

If you’re being frozen out of information, cut off from dividends, or watching insiders pay themselves while you get nothing, this guide explains the strongest card in your hand and when to play it.

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A hand-drawn organization chart on a dark background, on the header image for an Ask Us Anything post about directors, shareholders, and employees
Ask Us Anything

AMA – Directors vs. Shareholders vs. Employees

Directors, shareholders, employees. Do you know which hat you’re wearing right now?

In most small Ontario corporations, one person wears all three at once, and that’s exactly where the trouble starts, because each role carries different powers, different duties, and different personal risks.

The decisions you can make, the money you can take out, and the liability you’re exposed to all change depending on which hat is on your head when you act.

A reader asked us to untangle the three roles, so in this piece we do exactly that: who controls what, who owes duties to whom, and why the difference matters most when the corporation hits turbulence.

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