RSM225H1 Lecture Notes - Lecture 3: Limited Partnership, Oppression Remedy
Document Summary
Limited partnership: general partners are completely exposed, limited partners cannot manage the company, otherwise, they lose their status and become general partners. P can run the business if he becomes the director or signs a unanimous shareholder agreement declaraion and becomes a unanimous shareholder. No limited partner in a partnership, it will no longer be a lp (analyze whether it is a gpp), but the partnership will not automaically become a gpp. Typically, preferred shares are non-voing shares in most of the situaions. Typically, common shares are voing shares, they have the rights to vote for the directors. If a shareholder is being pick-on (being treated unfairly) by the corporaion, he/she can seek oppression remedy (go to the court and ask the judge for help). Dividends are paid only the directors say so. Background: a&b&c share the same amount of shares of the business, c is being pick-on by a&b, a&b want c to be out of the business.
