FINE 2000 Chapter Notes - Chapter 1: Private Equity Fund, Limited Liability, Chief Financial Officer
18 Mar 2014
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A corporation is a permanent entity, legally distinct from its owners, who are called shareholders or stockholders. A corporation confers limited liability to its owners: shareholders cannot be held personally responsible for the corporations" debts; they only stand to lose their investment. To incorporate, you work with a lawyer to prepare articles of incorporation, which set out the purpose of the business and how it is to be financed, managed, and governed. You may incorporate your firm federally under the canadian business corporation act, or provincially, under the relevant provincial laws. The corporation is considered a resident of its jurisdiction. Public company: corporation whose shares are listed for trading on a stock exchange. Private company: corporation whose shares are privately owned. More than 2,000 public companies exist in canada. Public companies can offer shares for sales to raise financing, and in return they provide detailed financial information in their annual reports and make timely disclosure of significant corporate events.
