Is a shareholder's agreement valid to change the president of a company?

Hardman v. Alexander, 2003 CarswellNS 97 (S.C.), is directly on point. In that case, which is quite similar to the circumstances of this case, all of the shareholders of the company had entered into a shareholders’ agreement. The shareholders’ agreement specified a certain individual be the president of the company. After the individual named as president resigned, the plaintiff claimed that the only way to change the president of the company was to amend the shareholders’ agreement and therefore the subsequent election of a new president by the directors of the company was not valid.