Corporations and Shareholders
A corporation is a legal entity separate from its shareholders.
Generally, the shareholders of the corporation are not personally liable for the debts or obligations of the corporation. A corporation is an asset that is owned through the acquisition of shares.
The corporation is not liable for the debts and obligations of its shareholders. The corporation is taxed as a separate legal entity. The shareholders of a corporation appoint the Directors of the corporation and the Directors elect the Officers of the corporation.
Under the Ontario Business Corporations Act (OBCA), 25% of the directors must be resident Canadians.
If you are a medical or dental professional, we have the experience to organize your professional corporation in accordance with the requirements of your governing professional body.
Non-Share Capital Corporations
If you are a member of a group you may also incorporate as a non-share capital corporation. These corporations are conducted without gain to their members. Recreational organizations, health centres, trade associations are examples of groups that could incorporate as a non-share capital corporation.
Under the Ontario Business Corporations Act, the corporate name may be in English, French, a combined English and French form, or a French form and an English form where the forms are equivalent but used separately. The word “Limited”, “Limitee”, Incorporated”, “Incorporee” or “Corporation” or their corresponding abbreviations must be part of the corporate name. The corporation may not have a name that is the same as or similar to the name of another corporate body.
Classes of Shares
The Articles of Incorporation set out the classes and maximum number of shares that the corporation is authorized to issue. If there is more than one class of shares, the articles must set out the rights, privileges, restrictions and conditions attaching to each class of shares. At least one class of shares must have the right to vote and the right to receive the remaining property of the corporation on dissolution. If you wish to treat shareholders differently, it is useful to have more than one class of shares.
Peggy Golden will work with you and your accountant in the formation of your corporation and the share structure of your corporation. Golden Law Office will file the articles of incorporation and maintain your corporate minute book by the preparation of annual resolutions and/or meetings of the directors and shareholders of the corporation.
Learn more about how we can assist you legally when it comes to your corporation – click here to fill out our easy contact form or give us a call on 519-738-4111.