The Option to Renew: An Critical Term for Tenants Negotiating a Commercial Lease

When negotiating a commercial lease, it is essential for tenants to understand how an option to renew can affect their rights. The renewal clause is a crucial term in any commercial lease. The clause gives a tenant the right, but not the obligation, to renew or extend the term of the lease when it expires. If it is exercised, the landlord and tenant create an extended term that begins on…

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Reasons to Hire a Corporate Lawyer When Purchasing a Business

Hiring a Corporate Lawyer to Assist Purchasing a business without hiring a corporate lawyer to assist in the purchase would not be a smart thing to do. There are too many legal complexities that must be addressed. Failing to address any of those complexities could cost you much more than the cost of hiring a lawyer in the first place. A lawyer can help assure that you acquire what you…

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New Record Keeping Requirements for Corporations that own interests in land in Ontario

As of December 10, 2016 all corporations incorporated under the Business Corporations Act (Ontario)(“OBCA”) with ownership interests in real property in Ontario have new record keeping requirements. As of December 10, 2016 all Ontario corporations with ownership in real property in Ontario must prepare and maintain at their registered office a register of “ownership interests” in land as a result of a newly enacted section 140.1 in the OBCA. This…

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So you want to be a director, do you? What you need to know first.

We often hear from clients who tell us they are about to make an investment in a private company, and want to know if they should also become a director of the company. There are reasons why becoming a director in such a circumstance might be beneficial, but there are also risks that you need to understand. Benefits The following are some of the benefits to becoming a director: As…

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Does a Majority Shareholder Need a Shareholders’ Agreement?

Yes, definitely. It is common practice for start-up and growth stage companies to offer shares to employees, or options to acquire shares. Issuing shares is an inexpensive way, at least initially, for a new company to hire talented people before it can afford to pay market rate salaries, and helps to align the interests of the persons who are issued shares with the interests of the majority shareholders and the…

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The $800,000 Capital Gains Exemption – Make Sure Your Shares Qualify

You have probably heard that you can sell the shares of your private corporation and shelter up to $800,000 of the capital gains under a capital gains exemption under the Income Tax Act (Canada)(the “ITA”). Planning to take advantage of these tax rules should form part of every corporation owner’s tax plan. For example, you may want to consider having as many family members as possible own shares in your…

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What happens if a person dies without leaving a will?

If a person dies without leaving a Will, he is said to die “intestate”. An intestacy, or partial intestacy, may also occur if: the Will fails to properly dispose of all assets of the deceased; the Will is not valid because it has not been signed and witnessed according to the law; the person making the Will did not have mental capacity to make a Will; or the Will has…

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