Distinctive components allow the public to distinguish your corporation form any other business. In example, if you are setting up a software business, you can't call it "Software Business" as there is no way to distinguish this from the hundreds of other software business. On the other hand, if you want to call it "Purple Accountant Software Business" you have now added distinctive terms to the name, even if it is a terrible name for a software business!

For a detailed resource regarding name selection click here.

In general, you issue a certain number of shares to founders and based on how many they own in relation to others determines the percentage of the business they own. You can have two classes of shares that have the same characteristics and issue equal amounts to two founders, which would still mean they each own 50% of the business. Having multiple share classes is often used in tax planning. If you don't know and want to move on, we recommend selecting one class of shares as you can always add more shares later (and we can help you do it!). If you want a better explanation, give us a call and we will drop some knowledge on you.

The names and addresses of directors, even if the address of a director is also a residential address, are corporate information that is public (see Public disclosure of corporate information) and will be published on the Corporations Canada online database.

Restrictions on securities transfer: The corporation’s securities, other than non-convertible debt securities, shall not be transferred without either (a) the sanction of a majority of the directors of the corporation, or (b) the sanction of the majority of the shareholders of the corporation, or alternatively (c), if applicable, the restriction contained in security holders’ agreements.

Powers of Directors: If authorized by by-law which is duly made by the directors and confirmed by ordinary resolution of the shareholders, the directors of the corporation may from time to time:

i. borrow money upon the credit of the corporation;
ii. issue, reissue, sell or pledge debt obligations of the corporation; and
iii. mortgage, hypothecate, pledge or otherwise create a security interest in all or any property of the corporation, owned or subsequently acquired to secure any debt obligation of the corporation.

Any such by-law may provide for the delegation of such powers by the directors to such officers or directors of the corporation to such extent and in such manner as may be set out in the by-law.

Nothing herein limits or restricts the borrowing of money by the corporation on bills of exchange or promissory notes made, drawn, accepted or endorsed by or on behalf of the corporation.

Appointment of Directors: The directors may appoint one or more directors, who shall hold office for a term expiring not later than the close of the next annual general meeting of shareholders, but the total number of directors so appointed may not exceed one third of the number of directors elected at the previous annual general meeting of shareholders.