To be clear, a share is a property entity in a company and a shareholder is a person or organization that buys shares in a company (i.e. legally owns a percentage of the company). To transfer a business company, the buyer must acquire at least the majority of the voting rights issued and ongoing from the business. These shares may belong to one or more owners who agree to sell their shares for compensation. This transfer could, in theory, be proved by the fact that the shares constituting a majority of these registered holders in favour of the new owner are simply favourable in exchange for the agreed payment. However, where the entity for sale is a private issuer, the usual practice is usually to sign a share purchase agreement (which may be more or less detailed depending on the wishes of the parties). In addition to favorite and common monikers, a company can refer to their actions with a certain class structure. There are usually three classes (Classes A, B and C) that are used to describe actions with different characteristics. For example, a Class A share may have more voting rights per share than a Class B or C share. To learn more about the structure of a company`s shares, you can read the company`s founding articles or the stock listing in which the shares are auctioned. The principles of union laws in Quebec are similar to those of other Canadian provinces.
As a general rule, the sale of a business does not nert a certification or collective agreement that remains mandatory for the buyer. However, Quebec legislation is unique in terms of individual employment contracts. The common law distinguishes according to the nature of the transaction: in the case of asset acquisition, it is assumed that employees are dismissed, while in the case of stock purchases, the employment relationship is not affected. Conversely, under Quebec law, whether the transaction is the acquisition of assets or shares of a company, certain employment contracts that were in effect at the time of the sale of the business are automatically maintained with the buyer, provided that the seller`s activities also continue with the buyer. In other words, the sale of a business itself does not sign any employment contract (and is not a serious reason or a good enough reason to do so). Therefore, if an employee`s employment contract is not terminated by the seller prior to the sale of the business, the buyer replaces the seller after the sale and the employee is considered the buyer`s employee. This model was designed specifically for the date a company sells its shares to a person (who is not yet a shareholder) and the sale results in the transfer of control to that new shareholder. Work and employment issues can be important in the context of the sale of a business. While the cost-of-labour assumption can be costly and some firms may have too large or inefficient a workforce, maintaining employment can also be critical to a company`s long-term success. One of the main questions that arises in the context of a merger and acquisition (M-A) is therefore whether the lender`s employees remain with the buyer.