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ARTICLE · 04 JULY 2025

What's In A Share – Do You Have The Right Share Capital?

Miller Thomson
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Miller Thomson

Miller Thomson LLP ("Miller Thomson") is a national business law firm with approximately 500...

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The current economic climate has put a general damper on transactional activity. Many business owners, prospective purchasers and practitioners point to uncertainty...

CanadaTax
Brendon Ho
Brendon Ho
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The current economic climate has put a general damper on transactional activity. Many business owners, prospective purchasers and practitioners point to uncertainty as the primary culprit for this slow down. It may be that such uncertainty persists for another 3.5 years, but that should not hinder business owners from engaging in some good old fashioned tax planning in the meantime. A first step in considering tax planning is to ask the question: Do you have the right share capital?

What is share capital?

Authorized share capital is the types of shares that a corporation is allowed to issue to its shareholders. A corporation's authorized share capital is documented in its articles at the corporate registry of its home jurisdiction. Simply put, if a certain class of share has not been created in a corporation's articles, then that type of share cannot be issued unless the corporation's articles are amended. Furthermore, any amendment to articles cannot

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