Consider classes of shares to confer different rights, privileges

When structuring the share provisions of a corporation, “there is no limit on creativity other than your imagination,” Toronto business lawyer Anton Katz tells AdvocateDaily.com.

He says there are many permutations in how shares can be designed to meet the needs of a corporation, but if there is only one class, all shareholders will have voting privileges and rights to dividends as well as assets upon liquidation.

“Share provisions can be put in place at the time of filing the articles of incorporation or they can be introduced as a part of the articles of amendment or amalgamation,” says Katz, principal of Anton M. Katz Barrister & Solicitor. “If you don’t stipulate the classes of shares, then what you have is common shares.

For the full article, visit AdvocateDaily.com

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