Chapter 15 Flashcards
What are the results of a Federal Incorporation if its operated in more than 2 provinces?
Results in a lower administrative cost
What are the results of a Provincial Incorporation if its operated in only 1 or 2 provinces?
Results in a lower administrative cost
What are Voting Rights?
Right to vote for election of directors
What are Financial Rights?
Rights to receive dividends
What are Preference Rights?
Right to receive dividends before others
What are Cumulative Rights?
Right to receive dividends later
What are Redemption Rights?
Right to have corporation buy back shares
What is the Right of First Refusal?
Shareholder must offer their shares to the directors at the same price negotiated with outsiders, give insiders a change to acquire shares before having to welcome new investors
What is NUANS Report?
A document that lists business names and trademarks similar to the ones being proposed
What are the 3 requirements for Securities Legislation?
Registration, Disclosure, Insider-trading restriction
What is a Debt Financing?
Obtaining a loan, must be repaid, don’t get to vote, debt is guaranteed, creditors are paid before shareholders
What is Equity Financing?
Issuing shares, no obligation to repay investments, and shareholders get to vote, share in profits, paid after creditors
