Form of entity
Canada
Corporate subsidiary (corporation form rather than flow-through form)
Separate and distinct legal entity. May incorporate federally (under the Canada Business Corporations Act) or provincially/territorially – for example, under the Business Corporations Act (Ontario). It is managed by a board of directors, which is responsible for making major business decisions and overseeing the general affairs of the corporation. Directors are elected by the shareholders of the corporation. Officers, who run the day-to-day operations of the corporation, are appointed by the directors.
Note: Additional forms of entity structures also exist and could be useful in some instances but are not covered in this guide either because they are less commonly used types of entity structures or not as likely to be relevant to the reader.
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