Exam 29: The External Responsibilities of a Corporation

In addition to the licensing and prospectus provisions, the legislation has introduced further controls on the securities industry. Give a couple of examples.

Canadian law requires that when a corporation is established it must have a minimum amount of issued capital.

Pat is one of 16 owners of Camstick Ltd. This corporation has been fined $30,000 for polluting the town's water supply. Pat is on the board and now finds himself charged and being convicted on the same matter. The judge finds that Pat personally knew and did nothing about the polluting. Not only that, but he has no remorse concerning the incident. The judge is now giving him, under the Environmental Protection Act, the maximum prison term of

The CBCA states that a promoter acting on behalf of a corporation before it comes into existence may avoid personal liability and waive any benefits under the contract by

When officers act as agents for the corporation and a third party is aware of some restriction on the officer's authority, then the third party

Regarding ratification of pre- incorporation contracts, how has the CBCA resolved the problem presented by common law?

Schemes of government regulation resemble traditional criminal law because

Regarding environmental concerns, which of the following is FALSE?

In spite of the fact that a corporation does not meet the solvency test, it can:

Since there is normally limited liability for the owners of corporations, special rules have evolved to protect corporate creditors. These rules are primarily concerned with

Which of the following is NOT an aim of securities legislation?

Dividend payment that has the effect of making the corporation insolvent, would fail to meet

What is the indoor management rule?

Directors may become personally liable to the corporation for deficiencies, if when they pay out dividends, the corporation cannot meet

Filing a prospectus with a securities commission is a serious and important effort. The commission will refuse to file it should it be misleading or have omitted required data. The filing needs to be made

Under the regulatory offence of "strict liability", the standard that must be met for obtaining a conviction is

When it is unlawful to declare dividends because of a deficiency in the capital fund, and yet the shareholders want a quick pay- out, then

Shareholders or directors may wish for the corporation to lend them money as an indirect method to get back some of their investment. The CBCA prohibits this activity

Traditionally, the role of management has been seen as maximizing corporate profitability for the benefit of its shareholders. Recently, there has been a public focus on corporate social responsibility. What is meant by the term "corporate social responsibility"? Name three things that advocates of corporate responsibility might expect of corporations.

What standard of care and skill is usually imposed by the court on an accused corporation and its directors when the activities of the corporation were carried on negligently?