Share Issuances

Share Issuances


What is a share Issuance?

A corporation may decide to issue new shares to new investors, current shareholders or other individuals who are not shareholders. The new shares may be issued, among other reasons:

  1. to raise new capital from new investors or current shareholders;
  2. to bring in a new partner who is bringing non-capital assets such as know-how, clients or technology;
  3. to reward achievements of current shareholders; and
  4. for tax and estate planning.

It is the proportion of shares, rather than the actual number of shares, that determines who (indirectly) controls the corporation. Accordingly, parties should seriously consider the proportion of shares that will result from the issuance of any new shares.

Share issues out of the corporation's treasury can only be issued following a resolution of the board of directors. This resolution outlines the number of shares to be issued, the money or money's worth for which the shares are to be issued and the share certificate (link to share certificates below) that will be issued to reflect such shares.


To learn more or to perform some compliance check out our site: https://www.corpcentre.ca/compliance-centre/ 


    • Related Articles

    • Share transfers of a corporation

      What is a share transfer? Besides having shares issued to oneself from the corporation, a person can also become a shareholder by way of a transfer of shares. A transfer of shares occurs when one shareholder agrees to transfer the right of ownership ...

    • Redemption of shares

      What is a redemption of shares? Redemption of shares refers to the process where a corporation repurchases its own shares from a shareholder at a price specified in the articles of incorporation. This can be at the option of the shareholder, at the ...

    • Closing a corporation that has property left over

      What do I do if the corporation has property left over? After payment of creditors' claims, the remaining assets, if any, may be distributed to the owners of the company. Assets are distributed in proportion to the share of ownership of “common” and ...

    • How is a corporation formed?

      The creation of a corporation occurs following the proper filing of "Articles of Incorporation' with the relevant government department or registry following which a certificate of incorporation is issued. The Articles of incorporation includes all ...

    • What is the difference between CorpCentre's Compliance Plan and Digital Minute Book service?

      Great question! They are 2 different and complementary services. 1- Our Compliance plan is an annual subscription where you can make changes, updates or filings related to your corporation. Our system prepares the documents and we submit the required ...