AFM101 Chapter Notes - Chapter 12: Absentee Ballot, Retained Earnings, Authorised Capital

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Donna Psutka

Document Summary

Has its own assets, incur liabilities, expand and contract in size, sue others, be sued and enter into contracts independent of shareholders. Created by applying to federal or provincial gov. Canada business corporations act (cbca) outline the legal requirements. The application must specify the name of the corporations, the purpose, the types and number of shares authorized, and a minimum amount of capital that the owners must invest at the date of organization. Shareholders get a voice on ownership, dividends and may receive a proportionate share of the distribution of remaining assets upon liquidation of the company. During the annual meeting a management information circular that contains several pages of information concerning people who were nominated for bo is distributed to shareholders. Its includes a proxy card which is an absentee ballot for the shareholders who did not attend the meeting. They can mail the proxy card to the company with their vote. Shareholders bod appoints president employs production vp,