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Ontario|Business LawCorporations 221 Corporate shares: General The owners of a corporation are called shareholders. Every corporation must decide what type of shares they will have and what the rights and restrictions of the different shares will be. Different rights can be given to different types or classes of shares. For example, people who hold one type of share may be allowed to vote while people holding another type of share may not. If different people have the same type of shares, their rights must be the same. This means that if you plan to have only one type of share, then all shareholders must have the same rights.
- Share specifications must be in Articles of Incorporation
The different classes of shares and the rights attached to each must be specified in the Articles of Incorporation. You must also specify any restrictions you want to put on the shares of the corporation. Even if you only want to have one class of shares, you must still specify any restrictions. For example, you may want to restrict who is allowed to own shares. Additionally, private corporations are restricted in the number of shareholders permitted and are not allowed to offer their shares to the public.
The legal issues involved in structuring a corporation are complex. You should consult a lawyer for more information and assistance before you incorporate your business.
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