Blog
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The dissolution of a company corporation signifies the end of its existence. There are a number of formalities to be complied with in order to authorize the dissolution of a company in Quebec and Canada. The rules are similar for companies incorporated in Ontario. By consent of directors When the company (under Quebec law) has no obligations (debts), no assets and no shareholders, the Board of Directors may decide to dissolve it by simple resolution. For companies -
Here are 5 widely-held but inaccurate myths about companies. Myth #1: A provincial company cannot do business outside the province This is false. Federal incorporation is not required to do business outside the province of incorporation. Once incorporated, a provincial company has "legal personality" and is free to do business anywhere, subject to the following conditions
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The three "basic" rights attached to a company's shares are the right to receive any dividends declared, the right to vote at any shareholders' meeting, and the right to share in the remaining property in the event of dissolution or liquidation. The Canada Business Corporations Act (CBCA) and the Quebec Business Corporations Act (QBCA) regulate the existence of these three basic rights differently.
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Determining ultimate beneficiaries for the purposes of the Legal Publicity Act ("LPLE") can be complex when one of the shareholders is a discretionary family trust, heavily used for tax planning purposes. While many grey areas remain on how to apply these new rules (in effect since March 2023), here are a few (non-exhaustive) elements to consider in determining ultimate beneficiaries when a shareholder is a trust
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The election of a company's directors is an important component of corporate governance. Here are a few practical considerations. Number ofdirectors When the company is incorporated, the articles of incorporation must specify either a fixed number ofdirectors or a minimum and maximum number ofdirectors. When the number is fixed, the shareholders must elect or attempt to elect this fixed number ofdirectors. In practice, the number
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When a company is incorporated, so-called "control" shares are often included in the share capital structure. These shares enable the holder to have greater control over the company's affairs than other shareholders. Here's a summary of how this type of share works. Characteristics Control shares generally carry no dividend rights. In most cases, the only rights conferred on holders of
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Since 2018, federally incorporated corporations have been required to maintain a register of individuals with significant control ("IBO"). The purpose of the register is to be able to determine which individuals control a given corporation, even if shares are held through another corporation, or by a nominee. On March 31, 2023, Quebec legislators followed suit with the concept of "beneficiary" disclosure.
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As of March 31, 2023, it will be required to declare the ultimate beneficiaries of companies in the enterprise register. The notion of ultimate beneficiary is defined in the Legal Publicity of Enterprises Act as amended by the Act to improve the transparency of enterprises. An ultimate beneficiary is in all cases a natural person, thus excluding legal persons or any other grouping. We offer you an overview of the circumstances in
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The Quebec Business Corporations Act, unlike the federal incorporation regime and the regimes of most other Canadian provinces (including the Ontario incorporation regime), permits the issuance of shares that are not "fully paid" at the time of issue. This means that the Board of Directors authorizes the issuance of shares regardless of the amount received from the share subscriber. These shares will be subject to an instalment call and ultimately to
The information contained in the articles on the IncorporationQuebec.net website does not constitute legal opinions, and is only general information intended to popularise certain legal concepts relating to company law or SME taxation. The information contained in the articles may not be applicable to certain specific cases. Pronto Corporate Services Inc. and the author of the texts are not responsible for any error, inaccuracy or out-of-date information that may be contained in the articles.
May 15, 2019
It is not always easy to find a business name, especially since the choice of name is restricted by various laws in Quebec. First, the
July 22, 2019
When the time comes to incorporate a business, it is necessary to decide under which law the company will be incorporated: the Quebec law (Business Corporations Act),
August 11, 2020
One of the major differences between the Canada Business Corporations Act (CBCA) and the Business Corporations Act (Quebec) (QBCA) is that the CBCA
September 12, 2020
Transfers of shares, by sale, gift or otherwise, often occur between people with family ties, especially within family businesses.
October 12, 2020
The position ofdirector in a corporation implies a lot of responsibility. Indeed, both the corporate laws and the
October 20, 2020
When it comes to transferring shares, whether by sale, donation or otherwise, it is important to respect the rules laid down by the law
October 25, 2020
The LLC (Limited Liability Company) is a specific legal vehicle in the United States. The first US state to enact legislation allowing the creation of an LLC was the
October 28, 2020
The authorised share capital of a corporation may provide for several classes of shares. In this case, the company's articles of association will
March 1, 2021
There are legal formalities that must be complied with when issuing shares, whether it is for an initial issue following the incorporation of the