RSM225H1 Chapter Notes - Chapter 24: Legal Personality, Unanimous Consent, Settling Accounts
Document Summary
A corporation may only be formed under a statute in a prescribed manner and registered with the designated government department. Laws regarding public health, zoning, and taxation apply to all businesses. Partnership: the relationship between two or more persons carrying on a business with a view to profit: may be natural persons (individuals) or legal persons (corporations), advantage: Incompetency of one member may lead to losses suffered by other members. Three types of partnership: general partnership, limited partnership, limited liability partnership. Partnership is a consensual and contractual relationship: a written partnership agreement is normally drawn up and signed by all partners. In the absence of a written/oral agreement, courts may still deem one person a partner by looking at whether they acted as one or not. A sharing of gross receipts does not necessarily mean a partnership exists. The courts consider profit-sharing that coincides with the ratio of capital contribution to be strong evidence of partnership.
