1. Corporations A legal entity whose assets and liabilities are separate from owners. It’s an artificial being, existing only in the eyes of the law. Articles of incorporation must be drawn – name and address of corporation – objectives of corporation – type/number of shares to be issued – number of directors

2. Control of the Corporation Shareholders Board of Directors Senior Management

3. Types of Corporations The Federal and Provincial Charters allow for four types of commercial corporations: – Private – Public – Crown – Mixed http://www.theglobeandmail.com/top1000

4. Private Corporations Shareholders are limited to fifty (50) Shareholders can not sell shares without the approval of the Board of Directors The general public is not permitted to buy shares from a Private Corporation Example: McCain Foods Limited

5. Public Corporations This form of corporation CAN BE owned by more than fifty (50) shareholders Can issue shares on the financial markets – (Example: NYSE, TSE) Usually owned by hundreds or thousands of shareholders

6. Crown Corporations A business that is owned and operated by the Government (either Federal or Provincial) Form of public ownership where the Government owns and operates a business on behalf of the general public Example: Canada Post

7. Why Crown Corporations? Some believe that certain sectors of the economy are too important to be left in the hands of private firms Provides services which would not likely be offered by others

8. Mixed Corporations Jointly owned by the Government and the general public (although can be privately held) Politicians do not participate in day-to-day decisions Most operate in the exploration and natural resource sectors – Ex: Telesat

9. Nonprofit Organizations Provide service rather than earn profit Not owned by a government entity Solicit donations Example: Lions Clubs