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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 98464
Experience:  Lawyer
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I am a 50% shareholder and sole director of an ontario

Customer Question

I am a 50% shareholder and sole director of an ontario corporation,my impared mother being the other 50%. I have jointly and severally with a sibling Power of attorney over her entire estate which includes her home and bank accounts. My joint POA has filed suit to see all the records of the Corp. Incidentally I become owner of the Corp upon my mother's passing. Correct me if I am wrong but technically I have 75% power therefore I am not bound to fullfill her request. At this % can the Corp veil be kept intact ?
Submitted: 3 months ago.
Category: Canada Law
Expert:  Debra replied 3 months ago.

Hello! My name is***** you for your question. I'm reviewing it now, and will post back again shortly.

Expert:  Debra replied 3 months ago.

You are correct.

First, you do not own her shares and will not until she dies.

You are partially responsible for her finances and that means you are partially responsible for these shares. You don't own them.

But even if you did you still have to make full disclosure at all times to the minority shareholders.

But more than when you act under a POA you must keep impeccable records of all you do on behalf of the granter of the POA and must provide records when asked to any other person acting under a POA now and to the executor and if asked to the beneficiaries when she does.

I know this is not at all what you wanted to hear but you are entirely misunderstanding the law and you need to know the law before you go to court. If you say you don't have to show this because you own 75% of the shares you are going to lose and get an order against you for the other party's costs and will need to pay a large part of them.

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Expert:  Debra replied 3 months ago.

Is there anything more I can help you with at this point in time?

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