BU231 Lecture Notes - Lecture 1: Share Capital, Legal Personality, Strict Liability
Document Summary
If you want to sue, you sue the corporation, not the individuals behind it. Liability covered by tort and contract law: corporation is also an employer, vicarious liability, corporation has privity in a contract, not the human being, vicarious performance. Legislation enacted to protect stakeholders in a corporation, including: employees, creditors. Creditors: no minimum investment required to start a corporation beyond the cost of incorporating. Lack of capital = inability to pay creditors particularly debts arising from tort or breach of. K: cbca covers protection of creditors, share capital cannot be repaid by way of dividends or redemption of shares if the transaction will render the corporation insolvent. Protections of investors: securities legislation securities act, r. s. o. 1990 c. s. 5: governed by ontario securities commission, two broad goals: Require full disclosure of financial information to prospective buyers of shares and bonds of the corporation: to accomplish these goals:
