Incorporation & Corporate

Unanimous Shareholder Agreement

Also called: USA

A shareholder agreement signed by all shareholders that can transfer some or all of the directors' powers to the shareholders themselves.

Varies by jurisdiction. Recognised under the CBCA and most provincial corporate statutes, with wording differences between them.

A USA is a specific statutory device, not just an agreement everyone happened to sign. When it restricts the directors' powers, it also shifts the corresponding legal duties — and liabilities — to the shareholders who took those powers on.

Why it matters: shareholders sometimes want director-level control without appreciating that the statutory liabilities travel with it.

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Legal information, not legal advice. Rules differ by province and change over time. A licensed lawyer must review your matter.

Editorial status: Lawkin Editorial — pending independent legal review.

Unanimous Shareholder Agreement — Canadian legal glossary | Lawkin — Lawkin