Oil & Gas Shareholder / Partner Lawyer

Owning shares in a privately-held company or being a partner in a business partnership is a far more rigorous endeavour than owning shares in a publicly-traded company, whether its on the TSX or NYSE. The challenges facing shareholders in both publicly-traded and private company spheres, in addition to business partners, can be quite substantial, such that attaining appropriate legal advice prior to attaining an interest in the company or partnership is of paramount importance.

The principal challenge associated with being a business partner or holding shares in privately-held companies is their lack of liquidity (i.e., the absence of a stock market to buy and sell shares), which necessitates the creation of specific partnership or shareholder arrangements. This is principally done through a shareholders agreement or partnership agreement, which not only provides a contractual framework for operating the business and making key decisions, but creates procedural buy-sell mechanisms, including death & disability arrangements, put & call options, shotgun provisions, piggy-back rights, insolvency and marital break-up requirements. The partnership / shareholders agreement thus provides a viable mechanism for resolving challenging stakeholder situations; nonetheless, disputes do arise and than the lawyer takes on a more assertive role in resolving a specifically defined point of contention.

For more information on the legal services of Neufeld Legal P.C. or to schedule an appointment, contact our lead lawyer Christopher Neufeld at Christopher@OilGasLawyer.ca or 403-400-4092.