Ask a Canada Law Question, Get an Answer ASAP!
Do you have a partnership agreement?
No, but we are both listed as directors on the incorporation papers. My partner has agreed that I can exit.
I'm hoping that it's as simple as notifying the tax office and having her countersign a letter that I could draft.
You have to take several steps.
You will need to do a share transfer and the corporation will need to pass some resolutions and update it's minutes.
As well, you should require your partner to sign and indemnity agreement so that you will not be liable for anything that does wrong afterwards.
The corporation will need to file the appropriate documents indicating a change in the directors.
It's just the two of us, we don't keep minutes. It's a small, seasonal landscaping business. For a share transfer, is that something I can write in a letter along with an indemnity agreement. Where do I find the appropriate documents?
So, it's not complicated and should not be that costly but to ensure you are adqualtey protected you need a lawyer to assist you.I understand this is a small corporation but because you did incorporate you do need to maintain minute books.It seems to me that your next step should be to sit down, even just for free, with a corporate lawyer.
You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.
Ok, thank you for your help on this.
You are welcome.
If we are done please click accept so that I can receive credit for providing you with this information.