Can I require financial information from my company through a shareholder agreement?

Yes, and this is one of the most practically important provisions a minority shareholder can negotiate. Under the Ontario Business Corporations Act, shareholders of a private corporation have limited automatic rights to financial information — much less than shareholders of a public company. A shareholder agreement can fill this gap by expressly requiring the company to provide regular financial statements, management accounts, and other information.

Typical information rights provisions require monthly or quarterly management accounts, annual audited or reviewed financial statements, annual budgets and business plans, and notice of any material changes to the business. They may also include audit rights — the right to have an independent accountant review the company's books.

For a passive investor or minority shareholder, information rights are the basic tool for monitoring your investment. Without them, you may have no visibility into whether the company is performing well, whether distributions are being fairly allocated, or whether management decisions are harming your interest. Negotiating strong information rights before you invest is far easier than trying to enforce them afterward. If you have not done so already, ask a corporate lawyer to review your existing shareholder agreement for this gap.