Taproot Community Support Services made national headlines as Canada’s first Employee Ownership Trust (EOT) in the social services sector, the first 100% EOT owned business, and, the largest EOT in the country. Behind the scenes, Clark Wilson LLP lawyers David Ford and St. John McCloskey helped make it possible.
Shaping a Historic Transition
Taproot, with 750 employees across British Columbia, Alberta, and Ontario, provides essential support services to adults with diverse abilities, vulnerable youth, and families. In 2024, the organization generated $54.3 million in revenue and served nearly 2,000 clients across 70 program sites.
Faced with succession planning decisions, Taproot chose an Employee Ownership Trust as the path forward — a structure newly introduced in Canada in 2024. By transitioning ownership to an EOT, Taproot gave every one of its employees an equal stake in the organization, at no cost to them. Dividend payments will now be paid to Taproot’s employee-owners based on hours worked, ensuring fairness and long-term stability. Importantly, this marks the first EOT in Canada where trustees hold 100% of the shares.
Clark Wilson’s Role
Clark Wilson’s team guided Taproot through the complex legal considerations required to establish the trust, ensuring the deal was aligned with the organization’s inclusive mission and values.
“EOTs are a transformative succession option for Canadian businesses,” said David Ford, lead counsel on the deal. “By putting ownership into the hands of employees, they provide continuity for organizations, stability for communities, and meaningful participation for workers. We’re proud that Clark Wilson is helping shape this important new chapter in Canadian business law.”
Clark Wilson worked alongside Rewrite Capital Advisors, who provided strategic guidance throughout the transition, and Western Pacific Trust Company, which acted as corporate trustee of the EOT on behalf of the employee-owners.
National Significance
The significance of this deal reached far beyond Taproot. Canada’s Minister of Finance, the Honourable François-Philippe Champagne, attended the announcement and praised the deal as “a game changer” that secures Taproot’s future while empowering its workforce.
Redefining Business Succession in Canada
For Clark Wilson, Taproot’s EOT marks a defining moment in Canadian business law. By helping create Canada’s first Employee Ownership Trust in the social services sector and the largest EOT in the country, the firm’s lawyers — together with Rewrite Capital Advisors and Western Pacific Trust Company — have set a precedent that is reshaping how organizations approach ownership, succession, and sustainability in Canada.