The Rural Voice, 1991-12, Page 19shares and the desire to restrict per-
sons who may become shareholders of
the corporation. Basically, existing
shareholders are given the first
opportunity to buy the shares if a
shareholder wishes to sell, but if the
existing shareholders are unable or
unwilling to purchase the shares for
sale, then a third party is permitted to
acquire the shares, provided the third
party is willing to be bound by the
terms of the original shareholders'
agreement.
Often, a right of first refusal will
apply not only when a shareholder
wishes to sell his shares voluntarily,
but also if a shareholder is obliged to
sell some or all of his shares on an
involuntary basis, such as when a
creditor wishes to realize on the shares
as security for a debt.
In a shareholder agreement
containing a right of first refusal, the
agreement usually provided that the
person wishing to sell his or her shares
must give notice to the corporation
that they wish to sell, and the number
of shares and the price of the shares
that are to be sold. Each of the other
shareholders of the corporation are
then given a chance to purchase shares
on the terms as set out by the person
wishing to sell shares.
A shareholder agreement protects
both the departing shareholder and
those who remain. There are no gen-
eral rules for shareholder agreements;
a shareholder agreement must be cust-
om tailored to fit the requirements of
the particular farm business and the
individuals concerned. A lawyer can
best assist you in determining the
value of a shareholder agreement to
your business and how the agreement
may be structured to accommodate the
needs of the shareholders.0
Agrilaw is a syndicated column pro-
duced by a full service London law
firm. Marlene McGrath, an associate
lawyer, specializes in corporate and
commercial law, wills, and estate
planning. Agrilaw is intended to
provide information to farmers on
subjects of interest and importance.
The opinions expressed are not
intended as legal advice. Before
acting on any information contained
in Agrilaw, readers should obtain
legal advice with respect to their own
particular circumstances.
FARMERS IN DISTRESS FINANCIALLY —
WONDERING WHERE TO TURN!
Let us help you
R.M. Kelly Inc. and Associates
Financial Consultants
Box 299, Brussels, Ontario NOG 1H0
519-887-9460
Specializing in farm consulting and small business — 8 years experience
CONTINUING EDUCATION COURSES
CO-ORDINATED BY CENTRALIA COLLEGE
AND YOUR LOCAL MINISTRY OF AGRICULTURE AND FOOD OFFICE
The following courses are sponsored by Ontario Agricultural Training Institute
and co-ordinated by Centralia College and the local OMAF office.
BRUCE COUNTY
Introduction of Farm Computing
4 Fridays, January 10 - 31/92
GREY COUNTY
Introduction/Intermediate Lotus1-2-3
4 Wednesdays, January 8 - 29/92
Farm Business Using Computers
4 Thursdays, January 9 - 30/92
PERTH COUNTY
Dairy Ration Formulation
4 Fridays, January 10 - 31/92
GST Update
Thursday, January 16/92
OAP
OAT"
011111
Walkerton OMAF
Fee: $107
Markdale OMAF
Fee: $107
Markdale OMAF
Fee: $107
Stratford OMAF
Fee: $107
Stratford OMAF
Fee: $35
The following courses are sponsored by the Perth Industrial Training Advisory
Committee and co-ordinated by Centralia College and the Perth OMAF office.
PERTH COUNTY
Intermediate Farm Computing 8 Tues. evenings
Jan. 7 - Feb. 25/92
4 Tues.
Jan. 7 - 28/92
8 Tues. evenings
Jan. 7 - Feb. 25/92
Saturdays
Jan. 11 - Feb. 15/92
8 Thurs. afternoons
Jan. 16 - Mar. 5/92
Advanced Farm Computing
Using B.E.A.R
Commodity Marketing
Farm Welding
Swine Feeding Management
Stratford OMAF
Fee: $43
Stratford OMAF
Fee: $43
Stratford area
Fee: $22
Wartburg
Fee: $54
Mitchell
Fee: $25
For more information or to register phone
your local Ontario Ministry of Agriculture and Food office
®Ministry of
Agriculture
and Food
ONTARIO
CENTRALIA
COLLEGE
Huron Park, Ontario NOM 1 YO
(519) 228-6691
DECEMBER 1991 15