While a share purchase is the sale of a person`s property in a business, the purchase of assets is the sale of a company`s individual or passive assets. For more details, a business asset is a tangible object or an intangible resource, such as: the principles governing union laws in Quebec are similar to those of other Canadian provinces. In principle, the sale of a company does not entail certification or collective agreement, which remains mandatory for the buyer. However, with regard to individual employment contracts, Quebec`s legislation is unique. The common law differs according to the type of transaction: in the case of a purchase of assets, employees are presumed to be dismissed, while in the case of a purchase of shares, the employment relationship is not affected. Conversely, according to Quebec legislation, whether the transaction involves the purchase of assets or shares of a company, the individual employment contracts in force at the time of the sale of the business automatically continue with the buyer, provided that the seller`s activities also continue with the buyer. In other words, the sale of a business does not in itself terminate an employment contract (and does not constitute, independently of this, a serious reason or a sufficient reason). Therefore, if an employee`s employment contract is not terminated by the seller before the sale of the business, the buyer takes the seller`s place after the sale and the employee in question is considered the buyer`s employee. b) when the buy-sell process is initiated by a Memorandum of Understanding (Bid Y04200) instead of a detailed offer to purchase shares (Bid Y04270), followed by a Final Certificate (Bid Y04600). In addition to preferred and common nicknames, a company can refer to its actions having a particular class structure. There are usually three classes (classes A, B and C) that are used to describe proportions 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 consult the company`s articles of association or the stock exchange listing in which the shares are promoted. In particular, in addition to essential working conditions such as the remuneration of workers or the nature of the employees` tasks and their place of performance, the buyer must acknowledge, among other things, the years of leave and service accumulated by the employees with the seller. Otherwise, unless a serious reason or an important and sufficient reason is demonstrated, the buyer may be exposed to claims of constructive termination. When it comes to an M&A transaction involving employees subject to Quebec law, lawyers should pay particular attention to the unique provisions contained therein, especially when staff members subject to the legislation of other Canadian provinces are involved. It is very important to determine whether a share purchase agreement is the appropriate legal instrument for your situation. A share purchase agreement is necessary in the following situations: This proposal was drafted specifically in the event that a company sold its shares to a person (who is not already a shareholder) and that sale had the effect of transferring control to that new shareholder. . .