MGSC30H3 Lecture Notes - Canada Business Corporations Act, Legal Personality, Corporate Liability
18 Apr 2014
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Incorporation process: a corporation is created only when certain documents are filed with the appropriate government office under either federal canada business. A general by law sets out the arrangements for carrying on the legal business of the corporation. If a corporation has few shareholders, the final organizational step is the creation of a shareholder"s agreement. A shareholder"s agreement is a contract between shareholders that customizes their relationship by providing rules that are better suited to their particular needs. Characteristics of corporations: the corporation is a separate legal entity. It carries its own business, owns property, possesses rights, and incurs liabilities. In most ways, it has the same rights, powers, and privileges as a natural person: separate legal existence has three implications, 1. A shareholder can be an employee or a creditor of the corporation. The shareholder and the corporation are two distinct entities that can contract with each other: 2.
