Tag: OBCA

TT Law > OBCA

Holdback, Escrow, or Deferred Payments? Understanding the Difference in a Sale/Purchase of Business

When buying or selling a business, it is common for part of the purchase price to be paid after closing. However, not all post-closing payment arrangements are the same. Holdback A holdback occurs when a portion of the purchase price is withheld by the buyer for a specified period after closing. The funds are intended […]

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Can a Director Be Removed Simply Because They Walked Away?

A common misconception in closely held corporations is that a director who stops showing up, returns company property, and ceases all involvement has automatically resigned as a director. Not necessarily. Under the Ontario Business Corporations Act (OBCA), resignation and removal are separate concepts. A director generally remains in office unless they resign in accordance with […]

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