MCS 3040 Chapter Notes - Chapter 15: Transact, Insider Trading, Unsecured Debt
31 Mar 2018
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Chapter 15: the corporate form - organizational matters. Predominant business vehicle in modern commerce because it is a separate legal identity. The corporation alone is responsible for its own debts and other liabilities. Should the corporation fail to make good on its obligations, the shareholders are not responsible. What types of shares will be available and to whom. Federally incorporated corporations have the right to carry on business in each province. Provincially incorporated corporations have the right to carry on business only in the province in which they are incorporated (with some exceptions). Share represents an ownership interest in the issuing corporation. A corporation may simply have one type or class of shares with all the basic shareholder rights attached to it. Classes of shares may include a combination of various rights and privileges, including: financial rights: voting rights, preference rights, cumulative rights redemption rights.
