Ambiguous drafting of earnout provisions in M&A agreements is a perennial source of post-closing disputes. What may have seemed clear to parties in the heat of negotiations can often.
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It has long been established that where the circumstances in which funds are advanced by a shareholder to the company in which they own shares is unclear, the court must consider the surrounding circumstances when determining how to characterize the advance. Historically, surrounding circumstances were understood to be the circumstances extant at the time the transaction was effected: e.g., Ghassemvand v. Premium Weatherstripping Inc., 2017 BCCA 309.
It has long been established that where the circumstances in which funds are advanced by a shareholder to the company in which they own shares is unclear, the court must consider the.
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