Neufeld Legal P.C. 403-400-4092 Chris@NeufeldLegal.com
Mistakes when incorporating a company tends to be an all too frequent occurrence, especially when as an incorporation lawyer you have been involved in both the incorporating a multitude of companies and having been involved in the legal efforts to attempt to resolve corporate problems emanating from an improperly incorporated company.
Some of the main incorporation related mistakes include the following:
- failing to retain appropriate legal counsel
- believing that the basic incorporation documents are sufficient to resolve issues pertaining to the company, its operations and its future
- believing the law establishes rules that allow for the efficient resolution of corporate problems
- not understanding the impact of having more than one shareholder, and in such circumstances, failing to implement an appropriate unanimous shareholders' agreement
- offering shares to too many people and thereafter failing to make them accountable for their continued contribution to the development of the company
- not operating outside the bounds of your corporate authority or alternative personally securing / indemnifying the company
- not consulting an accountant with respect to tax implications and responsibilities
As always, it is important to not only understand about corporations and incorporation, but also their limitations and boundaries, such that retaining appropriate legal counsel can be extremely advantageous and enable you to avoid significant mistakes.
As such, when your business seeks the professional services of experienced legal counsel, whether when incorporating a new Alberta company or dealing with its ongoing corporate development, your business can look to the Calgary, Alberta law firm of Neufeld Legal P.C. Contact us at 403-400-4092 or via email Chris@NeufeldLegal.com.
Alberta Business Corporations Act
- important elements
Powers of the Court
241 In connection with an action brought or intervened in under section 240 or 242(3)(q), the Court may at any time make any order it thinks fit including, without limiting the generality of the foregoing, any or all of the following:
(a) an order authorizing the complainant or any other person to control the conduct of the action;
(b) an order giving directions for the conduct of the action;
(c) an order directing that any amount adjudged payable by a defendant in the action shall be paid, in whole or in part, directly to former and present security holders of the corporation or its subsidiary instead of to the corporation or its subsidiary;
(d) an order requiring the corporation or its subsidiary to pay reasonable legal fees incurred by the complainant in connection with the action.
Relief by Court on the ground of oppression or unfairness
242(1) A complainant may apply to the Court for an order under this section.
(2) If, on an application under subsection (1), the Court is satisfied that in respect of a corporation or any of its affiliates
(a) any act or omission of the corporation or any of its affiliates effects a result,
(b) the business or affairs of the corporation or any of its affiliates are or have been carried on or conducted in a manner, or
(c) the powers of the directors of the corporation or any of its affiliates are or have been exercised in a manner
that is oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer, the Court may make an order to rectify the matters complained of.
* For the full statute, please click on this link. Nothing should be read in the abstract and specific legal advice is always recommended.