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Both the state and federal government demands tax from the corporation. The dividends are treated as income when being dispensed to shareholders hence making them eligible for taxation, again.
More federal and state regulations and oversight
Filing tax returns for corporate is complicated. Filing of annual reports, Articles of corporation and corporate bylaws is mandatory
While Preferred stock earns a dividend, they aren’t as attractive as they seem. In fact what makes the “preferred stock” term look misleading is that the owner has no right to participate in the decision making processes of the company because s/he doesn’t not have voting rights (Clairmont, 2016).
As a bondholder, you’re described as being a lender to the company who’ve been given a given amount of interest in exchange. Hence, you can only make money by selling the bonds or keeping them and collecting the interest. A shareholder, on another hand, can be described as a part owner of the company by possessing a piece of the company in form of shares. You make money by receiving the dividends or selling the stocks altogether.
8. Explain why it is becoming increasingly difficult to get prominent individuals to serve as directors of Canadian corporations.
Prominent individuals shun the idea of taking up director roles in corporations because it is considered to be a junior position in the organization (below CEO and an array of other posts). Prominent people dislike working as juniors.
10. An employee has a long term relationship with the company and the company is permitted by the law to withhold his/her income tax and submits it to the revenues authorities. Independent contractors have short tern relationships with the company and submit the taxes on their own without the intervention of the company.
In a court of law, a Judge will examine how an individual pays the income tax. If it is submitted via a third-party, that person qualified to be an employee and vice versa.
As an employee, you can leave employment without notice in the following circumstances;
13. In the employment law, constructive discharge occurs when an employee terminates the contract or resigns due to the hostile environment created by the employer (Weiner, 2011).
The court will consider the following when determining compensation for wrongful dismissal;
The remedies available to the plaintiff includes claiming damages for the wrongful dismissal or payment in lieu of the reasonable notice.
In case the employer fails to compensate the injured employee accordingly, the employee may seek alternative forms of statutory compensation or compel the employer to do so through the courts.
22. An employer can protect confidential information by inserting non-disclosure provision in employment agreements. The employer can also label appropriately on documents containing confidential information entirely limit access to the said information.
Clairmont, S. (2016). A Look into Protection of Preferred Stockholders' Rights under the Context of State-Owned Enterprise Reform. Journal of Labour Market, 652-7351.
Ponak, A., & Gottlieb, D. (2001). Mandatory agency shop laws as an explanation of Canada-U.S. union density divergence. Journal of Labor Research, 541-568.
Trotter, G. (2011). The Right to Decline Performance of Same-Sex Civil Marriages: The Duty to Accommodate Public Servants - A Response to Professor Bruce MacDougall. Journal of Commerce, 125-236.
Wayne, C. (2015). The Fantastic Failure: How Current Copyright Law Stacks the Deck against the Original Authors of Justice. Journal of Labour Markets , 167-201.
Weiner, S. (2011). Constructive Dismissal and Repudiation of Contract: What Must Be Proved. Journal of Labour Market, 354-433.
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