15 Apr

Contract of Purchase and Sale

General

Posted by: Adam Hawryluk

What is a Contract of Purchase and Sale?

The contract of purchase and sale is an agreement that a buyer and a seller sign when going through a property sale transaction.  This document outlines the terms and conditions the buyer and seller promise to abide by when the property is sold.

 What should be included in a Contract of Purchase and Sale?

Some of the most important terms deal with the property purchase price, terms of payment, how the buyer will receive the property, what property features are included in the price, and title clearance. Since signing this agreement is a crucial step in purchasing/selling a property, a lawyer can be of great help in ensuring the agreement is properly drafted.

 

The information and services offered on this Site are provided with the understanding that neither Dominion Lending Centres Inc., nor its suppliers or users are engaged in rendering legal or other professional services or advice. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time and the information you obtain at this site is not, nor is it intended to be, legal advice.  If you require specific advice regarding your own situation please contact me for consultation.

15 Apr

Articles of Incorporation

General

Posted by: Adam Hawryluk

What are Articles of Incorporation? 

The Articles of Incorporation are a legal document filed with a provincial or territorial government, or the federal government, which sets out a corporation’s purpose and regulations. This is one of the documents necessary to the incorporation process 

What Information is Included in Articles of Incorporation?

1. The full legal name of the corporation (from the name search report).

2. The full address of the registered office of the corporation (cannot be a PO box).

3.The number of directors (can be fixed or a minimum and a maximum).

4. The full names and addresses of each of the founding directors. (For a federal or Ontario provincial incorporation at least 25% of the directors must be resident Canadians, or if less than four directors at least one must be a resident Canadian.)

5. Restrictions on the business activities of the corporation or powers that the corporation may exercise. For example, “The business of the corporation shall be limited to the sales and service of motor vehicles”.

6. The classes of shares and the maximum number of each class of share that can be issued. Shares are typically given descriptions such as CommonClass AClass BPreferred, or other such designations.

7. The rights, privileges, and restrictions of each class of shares. For example, a class of shares may be described as “Non-Voting“, meaning that owners of the shares cannot participate in activities such as the election of directors. Shares may also have a designated fraction of voting rights, for example,1/10th of a vote per share. Preferred shareholders normally enjoy a preferential right to dividends and return on capital in the case of dissolution of the corporation (greater than holders of common shares but less than bondholders).

8. Restrictions (if any) on the issue, transfer, or ownership of shares.

9. Provisions or restrictions on the borrowing powers of the directors. For example, “The Board of Directors is authorized to borrow money or mortgage property as security for any debt or liability of the Company”.

10. Additional articles as required, such as proxy voting requirements, majority voting rules, etc.

11. Full names and signatures of the incorporators.

 

The information and services offered on this Site are provided with the understanding that neither Dominion Lending Centres Inc., nor its suppliers or users are engaged in rendering legal or other professional services or advice. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time and the information you obtain at this site is not, nor is it intended to be, legal advice.  If you require specific advice regarding your own situation please contact me for consultation.