A shareholder typically owns a percentage of the company in shares. It can be an individual person or another company, but they are legally separate from your corporation, as in your company cannot own itself in any way.

Here are the main key aspects of being a shareholder in Canada:

1. Rights and Privileges: Shareholders have rights, including the right to vote at shareholder meetings, the right to receive dividends, and the right to receive information about the company.
2. Types of Shares: Corporations can issue different types of shares, such as common shares and preferred shares with different liquidation preferences. Blinc at the moment only offers one class of common shares (voting and non-voting) to keep things simple.
3. Voting: Shareholders usually have the right to vote on key issues, such as the election of the board of directors and significant corporate decisions, financially or operationally. The number of votes a shareholder has typically corresponds to the number of shares they own. A shareholder can own non-voting shares, usually this is a passive or silent investor.
4. Dividends: Shareholders can receive dividends, which are distributions of a portion of the company's profits. The payment of dividends and the amount are determined by the company's board of directors and can vary based on the company's performance and profitability.
5. Risk and Ownership: Being a shareholder means participating in the ownership of a company, which includes sharing in its profits, however not legally liable for any corporate debts, unless personally guaranteed by the owners. The value of shares can increase or decrease based on the company's performance and other market factors.
6. Public vs. Private Companies: Shareholders can own shares in both public and private companies. Shares of public companies are typically traded on stock exchanges, which means they can be bought and sold by the public. Shares of private companies are not publicly traded and are often held by a smaller group of investors.
7. Lifetime Capital Gains Exemptions (LCGE): There are tax benefits of owning shares in a qualified small business corporation in Canada personally for over 24 months. You’re entitled to a lifetime capital gains exemption (LCGE) on the profit, up to $971,190, you made on selling your business. Visit Canada.ca for more information.

Blinc’s total compliance platform ensures you are tracking the shareholders and their percentages easily, allowing them to have full visibility into what they own. Sign up today!