Limited liability companies are subject to a number of legal requirements. They must maintain a corporate minute book which details directorships, shareholdings, resolutions concerning important corporate events, and other information. This minute book must be available for inspection by the public and government officials during normal business hours.
A company must also hold shareholders and directors’ meetings from time to time, keep a record of significant corporate decisions, and update directors information with the Corporate Registry in a timely fashion.
Ownership of a limited company, and the manner in which corporate revenue is dispersed to the owners, are evidenced through its shareholdings. Every company will issue shares to record the percentage ownership that each shareholder enjoys. Most limited companies will have additional classes of shares, such as preferred shares, in order to accommodate the issuance of dividends. Maintaining a record of these shareholdings, and where necessary reorganizing of the share structure is needed, as well as documenting the payment of dividends, are all important aspects of the legal maintenance of a company.
If it sounds complicated, it’s because it is.
To ensure compliance with the law, many limited companies prefer to use a law firm as their registered and records office. Darnell Law Group has an active corporate records department to assist clients with their corporate compliance matters.
There are three main business structures in BC: sole proprietorship, partnership, and incorporation. We can help you choose, and set up, the right one for your unique situation.
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