BCIT BLAW FINAL

When B owes A money the law says that A has a chose in action.

Security in a chattel can be perfected by registration under the PPSA or by taking possession of the chattel.

In an oppression action, the minority shareholder can, on behalf of the company, sue its directors when they deliberately reduce the value of the minority's shares through oppressive actions.

"Insider" shareholders have the same obligation as directors, that is, not to use insider information to benefit themselves or their friends and relatives.

A guarantee is a secondary obligation that arises only in the event of default by the principal debtor.

In a chattel mortgage the seller of the mortgaged chattel and the creditor are the same person.

You can become a partner without knowing it.

At the annual general meeting the creditors can vote for directors.

On a bankruptcy, preferred creditors have priority over secured creditors.

If a company has issued preferred shares, the preferred shareholders ordinarily have the right to sell them back to the company at fair market value.

After a bankrupt is discharged the debtor is freed from most previous claims by creditors.

In British Columbia one of the essential documents of incorporation are the Articles which set out the rules and regulations that govern the relationship between the shareholders and the company and which also set out special rights and restrictions relating to the shares of the company.

The fee simple is a higher form of land ownership than an easement.

In a closely held corporation, the shareholders can agree to impose restrictions on the sale of shares.

Bondholders never have the right to take over the management of a company.

Preferred shareholders cannot vote for directors unless their dividends have not been paid.

Computer programs are not protected by copyright law in Canada.

The only way to create a patent is to register the invention with the patent office.

Pre-emptive rights are rights granted to shareholders under the common law requiring that where new shares are issued they be offered to each of the shareholders in proportion to their existing holdings.

Preferred shareholders cannot make capital gains on their shares, but common shareholders can do so.

While corporate directors may have personal liability for certain acts such as failure to remit taxes to the government, they can set up a defence to such liability by claiming "due diligence."

In a continuing guarantee, provisions attempt to exempt creditors from common-law rules that release guarantors from liability when creditors change their agreements with principal debtors.

Shareholders may not be liable for the debts of a corporation but they are owners of its assets.

Attachment occurs when the debtor makes his or her first repayment on the loan.