As your business grows, relationships with partners, clients, suppliers, and insurers become more complex. Here’s how to protect yourself:
1. Shareholders’ Agreements
If you have more than one shareholder, a Shareholders’ Agreement is critical. It outlines what happens if a partner leaves, retires, or passes away — and how profits, voting rights, and decision-making are managed.
Without one, disputes can quickly turn expensive and time-consuming. A lawyer can draft a clear, fair agreement that prevents problems before they arise.
2. Contract Reviews and Limitation Periods
Review your contracts regularly to stay aware of renewal dates, price increases, and termination clauses.
If your corporation suffers damages (for example, from a supplier or landlord), you generally have two years to start a lawsuit from the date the problem occurred — or from when you should have known about it. Miss that window, and your right to sue could be lost forever.
3. Insurance Coverage and Renewal
Finally, review your business insurance annually. As your company grows, you may need to update your coverage to reflect new employees, assets, or operations. Don’t let an outdated policy leave you exposed.
🛡️ A proactive business lawyer can help you align your contracts and policies so your corporation stays legally protected year-round.
Final Word: Sweat the Small Stuff
In life, you’re told not to “sweat the small stuff.” But in business — especially in Ontario — it’s the small stuff that keeps your company legally strong and financially secure.
If you’re unsure whether your corporation is up-to-date, contact Droit Ouimet-McPherson Law today. We’ll review your corporate records, prepare your resolutions, and help you protect the business you’ve worked so hard to build
