You’ve Created a Corporation… Now What?
You’ve just finished filing your forms and articles of incorporation, you’ve received your certificate of incorporation; congrats! You created a corporation. You are well on your way to a (hopefully) successful business venture. However, before you are in the clear, there are formal requirements that must be met early in the life of the corporation. The first of these steps is the organization meeting, which as it indicates, is designed to internally structure the corporation. The second is the first annual shareholders meeting.
The Organization Meeting
Corporations incorporated in Alberta are governed by the Business Corporations Act RSA 2000 c B-9 (the “Act”). The Act requires that the board of directors meet after the certificate of incorporation is issued. At this first meeting, the directors institute certain foundational elements of the corporation. At the organization meeting the directors may:
The Annual Shareholder Meeting
The next milestone for the corporation will be the first annual shareholders meeting. The Act requires that this meeting be called by the directors within 18 months of the date of incorporation. At this meeting the shareholders will:
Shareholders meeting are required to be held annually. Each meeting must take place within 15 months of the last shareholders meeting.
Following the Act and properly documenting the directors’ and shareholders’ meetings will go a long way to ensuring that your corporation stays onside the law. A few simple steps early in the corporation’s life will allow you to focus on the business and keep the lawyers’ fees to a minimum.
Kevin Major-Hansford is a 2018 JD/MBA Candidate at the University of Calgary and a caseworker at the BLG Business Venture Clinic.
Blog posts are by students at the Business Venture Clinic. Student bios appear under each post.