Startup and video game law, from a Canadian and U.S. perspective


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Founder Leaving the Company

While founders embark on the journey of launching a company with an abundance of optimism it may be the case that their relationship does not last as long as the company, leading to the question of how to handle a founder leaving the company? This situation goes one of two ways: (1) the company and...

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When Non-Voting Shares CAN Vote

I frequently encounter a misconception that non-voting shares in British Columbia companies do not have a right to vote.  Unfortunately, this is not the case as, in certain circumstances, non-voting shares DO have voting rights. The obvious circumstances where non-voting shareholders can exercise a right to vote are, for example, alterations to company articles that impact...

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Startup Shareholders’ Agreement: Should I have a Shotgun Clause?

Exercise caution when deciding to insert a shotgun clause into your Shareholders’ Agreement.  Often, for startups, a shotgun clause may do more harm than good. A shotgun clause forces a shareholder out of the company. By exercising the clause, Shareholder 1 forces Shareholder 2 to either: sell all Shareholder 2’s shares to Shareholder 1 at a...

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