MGT120H5 Chapter Notes - Chapter 10: Legal Personality, Share Capital, Retained Earnings
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MGT120H5 Full Course Notes
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The board elects a chairperson who is often the most powerful person. The board elects a ceo who acts a president as well. Ownership of shares entitles you to rights unless otherwise specified. Right to receive a residual interest upon liquidation. Share capital amounts contributed by shareholders. Corporations issue share certificates in exchange for investment. Common shares (ordinary shares) subordinate to other classes of shares. Unless otherwise stated a share is common. Preferred shares shares that give their owners a certain advantage such as priority to receive dividends and priority to receive assets first if corporation liquidates. Par value shares shares of stock that do not have a value assigned to them by articles of incorporation. Stated value arbitrary amount assigned by a company to a share of stock at the time of issue. Issuing shares for cash dr cash, cr common share capital. Issuing shares for assets dr asset (i. e. equipment) cr common share capital.
