Legal Question in Business Law in Canada

This is the classic example of why shareholder agreements are so critical in business operations. While there is no obligation to have one, a properly prepared agreement would have addressed corporate governance (especially since you don't see eye to eye) and issues such as sale of shares, admission of new shareholders and even valuation of the shares.

In an ideal world, the business would have some agreement to address sale restrictions, but this situation is not ideal, and there is none. Before you assume absolutely nothing exists, though, check your incorporation paperwork, minutes of meetings or any other corporate documents to see if something exists that you don't know about. If none, it would seem that you are free to sell your interest to whomever you want and your brother just might find himself a business partner of someone he does not care to be in business with.