Simon Clément Partner, Lawyer and Managing Partner (Québec City office)

Bureau

  • Québec

Phone number

418 266-3087

Bar Admission

  • Québec, 1999

Languages

  • English
  • French

Profile

Managing partner of the Québec City office

Simon Clément is the managing partner of the Québec City office.

In addition to overseeing the management of the Québec City office, Simon is responsible for developing the firm’s reputation in the Capitale-Nationale region and implementing the strategic plan that falls under his purview as a member of the firm’s Management Committee.

He practises corporate law as well as litigation and specializes in the areas of civil, commercial and corporate litigation, with a particular focus on shareholder disputes, breach of contract and injunctions. He is also a recognized expert in the acquisition and sale of businesses and assets.

He chairs the Québec City division of the M&A Club, founded in 2012 to facilitate deal-making and financing in the mid-market private sector between M&A professionals.

Lectures

  • La gouvernance de l’entreprise et la responsabilité de ses administrateurs
  • Développement récent sur les clauses restrictives et la Loi sur l’intégrité en matière de contrats publics

Publication

  • Construction — Aspects juridiques, La Collection Blais, Volume 10-2011

Education

  • Techniques de plaidoiries, Barreau du Québec, 2005
  • LL.B., Université Laval, 1997

Boards and Professional Affiliations

  • Member of the Executive Committee of the firm (Lavery Lawyers)
  • Member of the board of directors of Office Québec-Monde pour la jeunesse, since 2018
  • Chair of the Québec City division of the M&A Club, since 2012
  • Member of the board of the M&A Club, since 2012
  • Member of the board of directors and the audit committee of Jeffery Hale–Saint-Brigid’s hospitals (2010–2014)
  • Member of the board of directors and the audit committee of the Conservatoire de musique et d’art dramatique du Québec (2010–2014)
  • Secretary and member of the board of directors of Théâtre Périscope (2005–2007)
  • Member of the continuing legal education committee of the Jeune Barreau du Québec (2003–2005)
  1. Why draw up a shareholders’ agreement?

    Shareholders’ agreements set out shareholders’ rights and obligations in various situations that may occur during a corporation’s existence. While it is true that corporate laws generally establish a common structure for all business corporations, they don’t do so in great detail. A shareholders’ agreement is thus an invaluable tool for preventing conflicts and settling those that do arise. A shareholders’ agreement is essential to the proper functioning of a corporation and helps to solidify the commitment of its shareholders. A shareholders’ agreement also serves to: Maintain proportional shareholding between shareholders; Maintain the “private” nature of a corporation by preventing third parties from becoming shareholders without the consent of the parties; Ensure a market for the shares; Prevent a minority shareholder from being prejudiced by a majority shareholder’s decisions or actions; Settle in advance certain potentially contentious issues in the administration of a corporation; and finally Give the shareholders the power to decide on some of the corporation in question’s activities. The main provisions of a shareholders’ agreement The clauses that can be included in a shareholders’ agreement are many, and they make it possible to apprehend and prevent difficult situations. Here are some examples. Share transfers Some clauses in shareholders’ agreements govern the transfer of shares, such as: Clauses imposing an obligation to sell or an option to purchase the shares of other shareholders in specific situations (disability, personal bankruptcy, retirement at a certain age, death, voluntary withdrawal from the corporation, misappropriation of corporate funds or breach of a non-competition or non-solicitation clause). A right of first refusal clause. This type of clause aims to oblige a selling shareholder to offer their shares to co-shareholders, in proportion to their shareholding, before the selling shareholder can sell them to a third party or another co-shareholder. A drag-along clause. This type of clause is required in agreements between a majority shareholder and one or more minority shareholders. By availing themselves of a drag-along clause, minority shareholders will be entitled to demand, as a condition of the majority shareholder's right to sell their shares to a third party, that the third party also purchase the minority shareholders’ shares on the same terms as those offered for the majority shareholder's shares. A shotgun clause. This type of clause allows any shareholder to initiate a process to purchase a co-shareholder’s interest, whereby the co-shareholder must either (i) accept the offeror’s offer to purchase; or (ii) make a counter-offer to purchase on the same terms and conditions as those contained in the offeror’s offer to purchase. Terms and conditions for share purchases A shareholders’ agreement can also serve to resolve issues arising from share purchase and sale clauses, by determining: Who will purchase the shares—the corporation, the shareholders or third parties. Payment terms (cash, deferred payments, etc.). Life insurance or other insurances to guarantee payment of the shares. Share valuation A shareholders’ agreement may determine various methods of valuing shares, which may vary depending on the circumstances leading to redemption, such as: Valuation at book value. Valuation at adjusted book value. Valuation at liquidation value. Valuation at capital value. Valuation by a third-party, etc. Voting clauses Shareholders may determine a variety of voting arrangements by setting out clauses relating to: The election of directors. The need for a special majority vote in certain situations. The creation of a pooling agreement (transfer of shares to a custodian agent who undertakes to vote and administer the shares in accordance with the instructions of the shareholders who signed the shareholders’ agreement). The creation of a trust agreement (transfer of shares to a custodian agent who undertakes to vote and administer the shares at their discretion). Management clauses Through management clauses, shareholders may: Determine each shareholder’s contribution. Share revenues. Provide for the reimbursement of expenses. Allocate the duties of the shareholders. Provide for terms should one of the shareholders become disabled. • Ensure that a departing shareholder will abide by exclusivity, confidentiality and non-competition undertakings. Govern vacation times. It may be tempting to think that shareholders’ agreements contain more or less the same clauses and that it would be easy to draft one on one’s own. While the concepts are easy to grasp, there are multiple factors that make their application much more complex. Each corporation has a different business reality, and a shareholders’ agreement must be adapted to such specific reality. For example, what if one of the shareholders cannot be insured because they are older or have a serious illness? Or what if shareholders’ life insurance is worth $500,000, but the value of a share is deemed to be $200,000? Who will benefit from the extra $300,000, the corporation or the estate? It’s best to consult a lawyer and a tax specialist to understand your corporation’s needs and all the risks associated with the clauses in a shareholders’ agreement. The experts at Lavery Lawyers advise you to draw up a shareholders’ agreement from the outset, when everything is going well, and to update it should the corporation undergo major changes or new shareholders arrive.

    Read more
  1. Simon Clément appointed President of the Board of Pyro Creations

    Lavery is pleased to announce that Simon Clément, managing partner of the Québec City office practising in Business Law and Litigation, has been elected President of the board of Les Créations Pyro. Les Créations Pyro is the producer of the Grands Feux Loto-Québec. Created in 1995, this event offers large-scale pyromusical shows from the St. Lawrence River and has been free since 2012. These world-class performances create a bridge between Québec City and Lévis and attract hundreds of thousands of people along both shores every year. “After a two-year forced break, this series of firework events on the magnificent St. Lawrence River will return in force, to the delight of tourists and residents of Quebec’s National Capital Region. The entertainment industry’s contribution to the economic vitality of the region is obvious to me and I feel privileged to be able to contribute to it through Les Créations Pyro, accompanied by expert board members and people of action,” says Simon Clément. This appointment will be an opportunity to contribute to the upcoming Grands Feux Loto-Québec in 2022, which will be held against the backdrop of the tourism industry’s recovery. For more information, visit les Créations Pyro website:Here

    Read more
  2. Stéphane Martin joins Lavery’s Quebec City office

    Lavery is pleased to announce that Stéphane Martin is joining its Quebec City office as a partner in the Business Law group. This most recent appointment is part of the firm’s efforts to cement its position in business law and contribute to the growth of the region’s businesses and partners. “His recognized expertise of commercial law, financing and banking law, and real estate law in the Quebec City market will add further quality to the Quebec City office’s service offering to private and institutional clients and give it greater depth," said Simon Clément, Managing Partner of Lavery Lawyers’s Quebec City office. Stéphane’s arrival comes on the heels of the recent arrival of Laurie Vandal-Fortin and Anne-Sophie Paquet in our Quebec City Business Law team.

    Read more