Document background
Articles of Incorporation of a Close Corporation are essential when establishing a privately held corporation in Canada where the founders wish to maintain tight control over ownership and transfer of shares. This document is typically used for family businesses, professional corporations, or small to medium-sized enterprises where restricting share ownership is crucial. The articles must comply with Canadian federal or provincial corporate law and include specific provisions about share transfer restrictions, number of shareholders, and corporate governance structures. They form the foundation of the corporation's legal existence and outline fundamental aspects such as share structure, director requirements, and business objectives. This document is particularly important as it establishes the close corporation status, which provides additional protections and restrictions not found in regular corporations, ensuring the business remains closely held among a limited group of shareholders.
