COMM231 Lecture Notes - Lecture 11: Canadian Business, Legal Personality, Fiduciary
14 Apr 2016
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For professions, cannot have limited liability: 3) corporaions. Legal case that created corporaion: salomon v salomon. Can only sue what is the corporaion"s assets. He made family shareholders as well as himself. He sold the corporaion his assets but he secured his assets. The court said the corporaion is its own enity. The corporaion is responsible for its own contracts and torts. Court also stated you can have a one person corporaion. Also that the owner can also be a creditor to that corporaion. The court agreed with salomon and the other creditors didn"t get anything since they didn"t secure their assets. Airlines, telephone companies have to register under this. Shareholders can vote in and out directors here. Investment group that invested in companies that they thought were of higher value. Thought current directors sucked and same with oicers. Preferred: get paid in dividends irst, dividend = proit, dividends are not always paid out.
