Canadian Business Law/Corporations

The Corporation
A corporation enjoys special status in the law. Among the characteristics of the corporation include:
 * exists as a separate legal entity
 * existence is perpetual
 * has limited liability
 * control by shareholders
 * shares are transferable

Process of incorporation
There are three ways in which to incorporate a company in Canada.
 * Letters Patent: A grant of a Charter from the Crown. This practice is only still used in PEI.
 * Memorandum of Association: The rights and obligations of the corporation are determined contractually by the Articles of Association. This practice is only used in Nova Scotia and British Columbia.
 * Statutory enactment: The corporation is enacted under a Corporations Act, which can either be federal or provincial.