Description
Rights and obligations of the shareholders of a business corporation
- A business corporation may choose to convert outstanding advances into shares in its capital. This conversion requires the prior agreement of the creditor.
- By converting advances into shares, the creditor can become a new shareholder, or increase its stake if it was already a shareholder. This process effectively transforms debt into equity, strengthening the company's balance sheet.
- The resolution governing the conversion of advances into shares, available on this site, is designed to simplify the process for most companies, effectively addressing common scenarios.
- Find a wealth of information on various legal topics in our legal FAQ.
- In general, any decision concerning a corporation must be formalized by a resolution adopted by its board of directors.
- All corporation resolutions must be carefully preserved in the corporation's minute book, ensuring traceability and legal compliance.
- The Legal Publicity Act stipulates that companies must promptly update the identification of majority shareholders and ultimate beneficiaries with the Registre des entreprises du Québec (REQ).
- This crucial requirement aims to ensure the transparency and accuracy of public information about corporations, making it easier for the public and authorities to verify their legitimacy, and reinforcing confidence and security in Quebec's business ecosystem.
Price
| Resolution of the corporation acknowledging the conversion of advances into shares | $25 |
