BU231 Lecture Notes - Lecture 20: Canada Business Corporations Act, Fiduciary, Comity

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30 Jan 2017
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Li(cid:373)ited lia(cid:271)ilit(cid:455) (cid:894)shareholders do(cid:374)"t get sued u(cid:374)til the(cid:455) are dire(cid:272)tor or officer) Tra(cid:374)sfer of o(cid:449)(cid:374)ership is eas(cid:455) just sell (cid:455)ou shares. Participation in management (cid:374)o right if (cid:455)ou"re a shareholder. Continued existence corporations go on forever unless someone kills them. Ease of creation annual filings and dues to sustain the corporation. The go(cid:448)er(cid:374)(cid:373)e(cid:374)t (cid:449)ill shut (cid:455)ou do(cid:374)"t if (cid:455)ou do(cid:374)"t (cid:272)o(cid:373)pl(cid:455). One-man corporation you want to incorporate but you want to be the sole director and manager. Purpose of one man is separate legal entity. To lift the corporate protection, you must show: 1. Fraud or breach of fiduciary duty, or 3. If you are a non-for-profit (cid:455)ou do(cid:374)"t ha(cid:448)e shareholders (cid:455)ou ha(cid:448)e members. They spend all the money they make on the business operations. If they have profit at the end of the year, they enhance the activity and grow the business. Charities (cid:373)ust go through the (cid:272)orporatio(cid:374)"s a(cid:272)t a(cid:374)d (cid:272)harit(cid:455) a(cid:272)t a(cid:374)d the(cid:374) (cid:455)ou get a li(cid:272)e(cid:374)se.

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