MGAC03H3 Lecture Notes - Lecture 7: Dividend, Retained Earnings, Absentee Ballot
22 Aug 2016
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Document Summary
If approved, government issues a charter, called articles of incorporation. Each corp is governed by a board of directors directly elected by shareholders. Management information/proxy circular several pages of info concerning people nominated to be members of board of directors, includes a proxy card (similar to an absentee ballot) A voice in management voting on major management issues. Dividends receive a portion of net earnings. Residual claim may receive a proportionate share of distribution of remaining assets upon company liquidation. Shareholders (owners of voting shares) board of directors (internal like managers and external like non-managers) president vp of marketing, vp of finance etc. Authorized number of shares: max number of shares that a corp can issue, as specified in charter: usually larger than corp expects to issue, to allow for flexibility without having to amend charter. Outstanding shares: total number of shares owned by shareholders on any particular date.
