Resolution

What is a Resolution? A resolution is a form of approval. A resolution is an agreement or decision made by the directors of a company. For example: approval of the change of registered office address of a company, approval to amend the articles of a company, approval to enact by-laws…

Listing of Indian Companies Abroad

Unlisted Indian Companies are now allowed to directly list abroad, without any requirement of prior or subsequent listing in India with the approval of the approval of the Ministry of Finance. This scheme will be implemented on a pilot basis for a period of two years from the date of…

Shotgun Clauses

In this post, we discuss what a shotgun clause is and how it works. A shotgun clause is a specific type of exit provision that may be included in a shareholders' agreement. The shotgun clause allows a shareholder to offer a specific price per share for the other shareholder(s)’ shares; the other…

New Protocol to the Canada Barbados Treaty

On December 17, 2013 the Protocol (the “Protocol”) amending the Agreement between Canada and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital (the “Treaty”) entered into force. This Article will provide a summary of important changes…

Islamic Compliant Financing

Islamic finance rests on the application of Islamic law, or Shariah, whose primary sources are the Qur’an and the sayings and conducts of the Prophet Muhammad. Shariah is not a codified system of laws, and interpretations of its principles vary between different schools of thought. The main principles of Islamic…

Qualifying Amalgamation Defined

Two British Columbia credit unions, Delta Credit Union and First Heritage Savings Credit Union (together the “Predecessors”) amalgamated to form Envision Credit Union (“Envision”). The parties structured the amalgamation in such a way so as to avoid coming under the purview of section 87 of the Income Tax Act (the…

Shareholder Loans

One of the ways in which you, as a shareholder can withdraw funds from your corporation is by taking out a loan from your corporation. However, you have to be aware of the potential income tax consequences of receiving a loan from the corporation. If you are a shareholder of…

What are share classes?

Any ‘person’ can own a share in a corporation and be a 'shareholder.' 'Person' includes individuals, corporations and trusts. Shares are a form of property, and can be bought and sold. However, these rights may be subject to any limitations that may be set out in the Canada Business Corporations…