Have you incorporated but are unsure of how the law requires you to maintain your books and records? Under the Ontario Business Corporations Act, or the Canada Business Corporations Act, a corporation must prepare annual resolutions of the shareholders and directors to approve the annual financial statements. On an annual basis, we review the financial statements and balance sheets of a corporation and prepare annual resolutions approving of these statements as required by the governing legislation. These annual corporate resolutions often include resolutions authorizing the payment of capital dividends from the non-taxable portion of a corporations capital gains, eligible dividends extracted from a corporations General Rate Income Pool (GRIP), share redemptions, management bonuses and other forms of year-end resolutions in order to extract retained earnings from the corporation in the most tax efficient manner.
Our lawyers also negotiate and draft shareholder agreements and provide succession planning and exit strategy advice. In the event of a shareholders’ dispute, we can offer objectively creative options and alternatives to resolve the dispute and minimize costs to our clients. We also provide numerous services and valuable advice with respect to the organization, governance, and dissolution of corporations.
Take advantage of our breadth of knowledge in the area in tax and corporate law by contacting one of our lawyers today.
IC05-1R1 – Electronic Record Keeping
IC78-1oR5 – Books and Records Retention / Destruction
This posting provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All situations are specific to their facts and will differ from the situations in the articles and postings. If you have specific legal questions you should consult with a lawyer.