What is the share capital of a business corporation?

The share capital can define itself as the amount invested by interested persons, individuals or businesses, in consideration for the issuance of shares by the business corporation. Several types of shares can be issued and each type gives to the shareholder different rights and restrictions within the business corporation such as the voting right, the right to receive dividends, the right to participate in profit sharing. The description of the authorized share capital is provided in the articles of constitution (called the articles of incorporation in the federal jurisdiction) of the business corporation.

In Quebec, the share capital of a business corporation can be constituted of shares with par value, shares without par value or both types of shares at the same time. In Canada, the share capital is always constituted of shares without par value.

In Quebec, the business corporation can issue shares of its share capital while those are not fully paid but these shares then remain submitted to calls for payment. In Canada, the business corporation cannot issue shares of its share capital if those have not been fully paid.