Records Showing Shares Was Issued

A new corporation almost always issues shares to record the ownership interests of the persons who invest in the corporation. Most smaller corporations issue shares for cash, property, or the performance of services that were rendered in forming the corporation.

Many provinces prohibit the issuance of shares in return for a promise to pay for the shares later (in return for a promissory note) or for a promise to perform future services. if a small existing business is being incorporated, the business owners have normally issued shares in return for the transfer of business assets to the new corporation.

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If you haven’t issued stock or didn’t keep written records showing who owns shares, you should do so now.

Once you’ve organized your corporate records book, remember that while a corporate records book makes it easy for you to keep all key documents in one place, it won’t work unless you consistently use it

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