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Canadian Legal Forms > Business > Corporations > Shareholder Agreements > Covenant to be Bound by Shareholders Agreement - Transferor Released
Covenant to be Bound by Shareholders Agreement - Transferor Released
Often shareholders will be bound to a document referred to as a Shareholders Agreement. This type of agreement will require that a shareholder seeking to sell shares of stock must first obtain the consent of the other shareholders and require that recepient of the transferred shares agree to be bound by the terms of the Shareholders Agreement.
This form is a covenant whereby a new shareholder of a corporation (generally the recepient of transfered stock) agrees to be bound by the terms and conditions of a Shareholders Agreement between the existing Shareholders. The existing shareholder who is transferring the shares to new shareholder is released from further obligations under Shareholders Agreement (typically because he has transferred all of his shares).
See form: Covenant to be Bound by Shareholders Agreement - Transferor Released
Note: Some forms not suitable for use in the province of Quebec. Check form details.
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