RSM320H1 Chapter Notes - Chapter 15: Liquidating Distribution, Share Capital, Capital Account
Document Summary
The canada business corporation act (cbca) is a relevant business corporation act: provincial business corporation acts also exist but vary from province to province. Ha(cid:396)es g(cid:396)ouped (cid:271)y (cid:862)(cid:272)lass(cid:863) (cid:894)e. g. class a co(cid:373)(cid:373)on: within each class, each share equal. Ease of transfer of ownership: advantage to both issuing corporation and investor. As a minimum each share has these basic or inherent rights: to share proportionately in profits and losses, the right to vote for directors, to share proportionately in assets upon liquidation. Preemptive right for any new share issues can also be assigned under cbca. Certain inherent rights given up or exchanged for other special rights or privileges. Preference given on: dividends (usually at a stated rate, claim to assets on dissolution. Preferred shares features (some or all may be attached to a preferred share: cumulative. Limited liability of shareholders: unlike partnership or proprietorship form of business. Shareholders not generally liable for the obligations of the corporation.
