Copyright © Rose Law Firm. All rights reserved.
Shareholders own and ultimately control the direction of the corporation. Minority shareholders in Canada have rights under corporate statutes, and many disputes ensue between majority and minority shareholders.
Our lawyers ensure that your Shareholder’s Agreement is drafted to account for any number of contingencies to protect your rights in the event of fundamental changes to your corporation. Some of the factors that have to be accounted for in a Shareholders Agreement include the transfer of shares upon death, disability, or disagreement among shareholders.
Whether petitioned by creditors through a bankruptcy application or a voluntary assignment into bankruptcy by the debtor, all property of the debtor prior to discharge from bankruptcy immediately becomes property of the trustee in bankruptcy (TIB), who’s role it is to distribute the assets of the debtor to all creditors that file a Proof of Claim within the time required by the Bankruptcy and Insolvency Act. There are, however, designated classes of assets that are exempt from execution by creditors. The following property is not accessible to the trustee for the purposes of satisfying creditors in a bankruptcy proceeding:
Trust property (e.g. lawyer’s trust account);
Deemed trusts (GST/HST, employee deductions, CPP contributions);
Insurance proceeds (Insurance Act, s.196);
RRSP’s and RRIF’s (except contributions in the year prior to bankruptcy);
Clothing, vehicle, household furniture tools of the trade ($25,000 for farmers, $10,000 otherwise);
Motor vehicle up to $5,650;
Property held by bankrupt in trust for another;
General damages for pain and suffering;
Damages for wrongful dismissal;
Damages from injury to your person; and
Ontario Works financial assistance.
Any income earned by the bankrupt during bankruptcy over a minimum cost of living must be paid to the trustee. In addition, all non-exempt property which the bankrupt owns as of bankruptcy or which may devolve upon him/her prior to discharge must be payable to trustee. Bankruptcy is a complex process. If you have been petitioned or assigned into bankruptcy, please call the lawyers at Rose Law Firm to protect your rights and remedies.