What is a valuation clause and why do I need it?
A valuation clause provides a method to determine the value of the Corporation’s shares. Such a process is needed when shareholders want to sell their shares or when a shareholder dies and the other shareholders want to buy those shares. Since most small corporations are private (not traded on a stock exchange) the shares are hard to value without a predetermined method. Having this clause will reduce the disagreement and uncertainty that occurs when a shareholder wants to buy or sell shares.
