The document that sets out the share capital is of particular importance among the documents that make up a corporation's articles of incorporation. This document, which is generally attached as a schedule to government forms, has two distinct roles: it specifies the legal relationship that will form between the issuing company and those who subscribe to its shares and it defines the allocation of basic rights between the shareholders as well as any other rights they might have in the corporation.

Our share capital template is versatile and can be adapted to suit the needs of most SMEs.

When incorporating a business, it should be noted that the share capital creates the rights that the shareholders’ agreement governs. We, therefore, recommend that you consult our Unanimous Shareholder Agreement template (B02500) to familiarize yourself with this important element associated with the incorporation of a business.

1.00 CLASS “A” SHARES (COMMON 1)

1.01 Voting Right
1.02 Dividend
1.03 Return of Capital
1.04 Participation
1.05 Conversion Right
1.06 Redemption Right
1.07 Redemption Procedure
1.08 Purchase by Agreement
1.09 Series
1.10 Veto
1.11 Security
1.12 Pre-emptive Right

2.00 CLASS “B” SHARES (COMMON 2)

2.01 Voting Right
2.02 Dividend
2.03 Return of Capital
2.04 Participation
2.05 Conversion Right
2.06 Redemption Right
2.07 Redemption Procedure
2.08 Purchase by Agreement
2.09 Series
2.10 Veto
2.11 Security
2.12 Pre-emptive Right

3.00 CLASS “C” SHARES (CONTROL)

3.01 Voting Right
3.02 Dividend
3.03 Return of Capital
3.04 Participation
3.05 Conversion Right
3.06 Redemption Right
3.07 Redemption Procedure
3.08 Purchase by Agreement
3.09 Series
3.10 Veto
3.11 Security
3.12 Pre-emptive Right

4.00 CLASS “D” SHARES (PROFIT-SHARING)

4.01 Voting Right
4.02 Dividend
4.03 Return of Capital
4.04 Participation
4.05 Conversion Right
4.06 Redemption Right
4.06.01 At Option of Corporation
4.06.02 At Option of Holder
4.07 Redemption Procedure
4.07.01 At Option of Corporation
4.07.02 At Option of Holder
4.08 Purchase by Agreement
4.09 Series
4.10 Veto
4.11 Security
4.12 Pre-emptive Right

5.00 CLASS “E” SHARES (FROZEN)

5.01 Voting Right
5.02 Dividend
5.03 Return of Capital
5.04 Participation
5.05 Conversion Right
5.06 Redemption Right
5.06.01 At Option of Corporation
5.06.02 At Option of Holder
5.07 Redemption Procedure
5.07.01 At Option of Corporation
5.07.02 At Option of Holder
5.08 Purchase by Agreement
5.09 Series
5.10 Veto
5.11 Security
5.12 Pre-emptive Right

6.00 CLASS “F” SHARES (INTERNAL FINANCING 2)

6.01 Voting
6.02 Dividend
6.03 Return of Capital
6.04 Participation
6.05 Conversion Right
6.06 Redemption Right
6.06.01 At Option of Corporation
6.06.02 At Option of Holder
6.07 Redemption Procedure
6.07.01 At Option of Corporation
6.07.02 At Option of Holder
6.08 Purchase by Agreement
6.09 Series
6.10 Veto
6.11 Security
6.12 Pre-emptive Right

7.00 CLASS “G” SHARES (INTERNAL FINANCING 1)

7.01 Voting
7.02 Dividend
7.03 Return of Capital
7.04 Participation
7.05 Conversion Right
7.06 Redemption Right
7.06.01 At Option of Corporation
7.06.02 At Option of Holder
7.07 Redemption Procedure
7.07.01 At Option of Corporation
7.07.02 At Option of Holder
7.08 Purchase by Agreement
7.09 Series
7.10 Veto
7.11 Security
7.12 Pre-emptive Right

8.00 CLASS “H” SHARES (EXTERNAL FINANCING 2)

8.01 Voting
8.02 Dividend
8.03 Return of Capital
8.04 Participation
8.05 Conversion Right
8.06 Redemption Right
8.06.01 At Option of Corporation
8.06.02 At Option of Holder
8.07 Redemption Procedure
8.07.01 At Option of Corporation
8.07.02 At Option of Holder
8.08 Purchase by Agreement
8.09 Series
8.10 Veto
8.11 Security
8.12 Pre-emptive Right

9.00 CLASS “I” SHARES (EXTERNAL FINANCING 1)

9.01 Voting
9.02 Dividend
9.03 Return of Capital
9.04 Participation
9.05 Conversion Right
9.06 Redemption Right
9.06.01 At Option of Corporation
9.06.02 At Option of Holder
9.07 Redemption Procedure
9.07.01 At Option of Corporation
9.07.02 At Option of Holder
9.08 Purchase by Agreement
9.09 Series
9.10 Veto
9.11 Security
9.12 Pre-emptive Right

10.00 REDEMPTION PROCEDURE

10.01 Redemption at Option of Corporation
10.01.01 Notice
10.01.02 Handing Over of Certificates
10.01.03 Failure to Hand Over Certificates
10.01.04 Partial Redemption
10.02 Redemption at Option of Holder
10.02.01 Notice
10.02.02 Handing Over of Certificates
10.02.03 Payment
10.02.04 Personal Right

11.00 REDEMPTION PRICE

11.01 Definitions
11.02 Fair Market Value
11.03 Reassessment
11.04 Contesting Assessment
11.05 Adjustment
11.06 Payment
11.07 Dividend
11.08 Reduction of issued and paid-up share Capital

1.00 CLASS “A” SHARES (COMMON 1)

1.01 Voting Right
1.02 Dividend
1.03 Return of Capital
1.04 Participation
1.05 Conversion Right
1.06 Redemption Right
1.07 Redemption Procedure
1.08 Purchase by Agreement
1.09 Series
1.10 Veto
1.11 Security
1.12 Pre-emptive Right

2.00 CLASS “B” SHARES (COMMON 2)

2.01 Voting Right
2.02 Dividend
2.03 Return of Capital
2.04 Participation
2.05 Conversion Right
2.06 Redemption Right
2.07 Redemption Procedure
2.08 Purchase by Agreement
2.09 Series
2.10 Veto
2.11 Security
2.12 Pre-emptive Right

3.00 CLASS “C” SHARES (CONTROL)

3.01 Voting Right
3.02 Dividend
3.03 Return of Capital
3.04 Participation
3.05 Conversion Right
3.06 Redemption Right
3.07 Redemption Procedure
3.08 Purchase by Agreement
3.09 Series
3.10 Veto
3.11 Security
3.12 Pre-emptive Right

4.00 CLASS “D” SHARES (PROFIT-SHARING)

4.01 Voting Right
4.02 Dividend
4.03 Return of Capital
4.04 Participation
4.05 Conversion Right
4.06 Redemption Right
4.06.01 At Option of Corporation
4.06.02 At Option of Holder
4.07 Redemption Procedure
4.07.01 At Option of Corporation
4.07.02 At Option of Holder
4.08 Purchase by Agreement
4.09 Series
4.10 Veto
4.11 Security
4.12 Pre-emptive Right

5.00 CLASS “E” SHARES (FROZEN)

5.01 Voting Right
5.02 Dividend
5.03 Return of Capital
5.04 Participation
5.05 Conversion Right
5.06 Redemption Right
5.06.01 At Option of Corporation
5.06.02 At Option of Holder
5.07 Redemption Procedure
5.07.01 At Option of Corporation
5.07.02 At Option of Holder
5.08 Purchase by Agreement
5.09 Series
5.10 Veto
5.11 Security
5.12 Pre-emptive Right

6.00 CLASS “F” SHARES (INTERNAL FINANCING 2)

6.01 Voting
6.02 Dividend
6.03 Return of Capital
6.04 Participation
6.05 Conversion Right
6.06 Redemption Right
6.06.01 At Option of Corporation
6.06.02 At Option of Holder
6.07 Redemption Procedure
6.07.01 At Option of Corporation
6.07.02 At Option of Holder
6.08 Purchase by Agreement
6.09 Series
6.10 Veto
6.11 Security
6.12 Pre-emptive Right

7.00 CLASS “G” SHARES (INTERNAL FINANCING 1)

7.01 Voting
7.02 Dividend
7.03 Return of Capital
7.04 Participation
7.05 Conversion Right
7.06 Redemption Right
7.06.01 At Option of Corporation
7.06.02 At Option of Holder
7.07 Redemption Procedure
7.07.01 At Option of Corporation
7.07.02 At Option of Holder
7.08 Purchase by Agreement
7.09 Series
7.10 Veto
7.11 Security
7.12 Pre-emptive Right

8.00 CLASS “H” SHARES (EXTERNAL FINANCING 2)

8.01 Voting
8.02 Dividend
8.03 Return of Capital
8.04 Participation
8.05 Conversion Right
8.06 Redemption Right
8.06.01 At Option of Corporation
8.06.02 At Option of Holder
8.07 Redemption Procedure
8.07.01 At Option of Corporation
8.07.02 At Option of Holder
8.08 Purchase by Agreement
8.09 Series
8.10 Veto
8.11 Security
8.12 Pre-emptive Right

9.00 CLASS “I” SHARES (EXTERNAL FINANCING 1)

9.01 Voting
9.02 Dividend
9.03 Return of Capital
9.04 Participation
9.05 Conversion Right
9.06 Redemption Right
9.06.01 At Option of Corporation
9.06.02 At Option of Holder
9.07 Redemption Procedure
9.07.01 At Option of Corporation
9.07.02 At Option of Holder
9.08 Purchase by Agreement
9.09 Series
9.10 Veto
9.11 Security
9.12 Pre-emptive Right

10.00 REDEMPTION PROCEDURE

10.01 Redemption at Option of Corporation
10.01.01 Notice
10.01.02 Handing Over of Certificates
10.01.03 Failure to Hand Over Certificates
10.01.04 Partial Redemption
10.02 Redemption at Option of Holder
10.02.01 Notice
10.02.02 Handing Over of Certificates
10.02.03 Payment
10.02.04 Personal Right

11.00 REDEMPTION PRICE

11.01 Definitions
11.02 Fair Market Value
11.03 Reassessment
11.04 Contesting Assessment
11.05 Adjustment
11.06 Payment
11.07 Dividend
11.08 Reduction of issued and paid-up share Capital