Taking Advantage of Corporate Partnerships

Article Abstract:

Generally, when two or more individuals set up a new business, incorporation of a single, jointly-owned corporation is the norm. Under some circumstances, it is beneficial for two seperate corporations to join in a partnership. The federal budget of Canada of December 11, 1979 required corporate partners to be treated as single small business in terms of its annual business limit. There is still a tax advantage here as well as with the Part II of the Income Tax Act concerning distribution with which the tax can be avoided. Other advantages than tax advantages exist in partner corporations. Each partner may determine his company's investment policy. Selling the business or share of the business is less complicated and more flexible. Examples are drawn out. Life insurance on the lives of partners in the corporate partnership can be paid out of the corporations after-tax income so avoiding distributions tax and personal income taxes.

Canada, Small business, Partnership, Partnerships

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Who holds the reins?

Article Abstract:

The spate of company failures in the late 1980s has drawn public attention to the issue of corporate governance. The International Capital Markets Group created a task force in 1994 to investigate governance structures in the US, the UK, Germany, France, Canada and Japan, with particular focus on the issues of internal and external audit, supervision and management, and the involvement of shareholders in governance. The resulting report, 'Who Holds the Reins,' promotes clearer understanding of governance structures in practice. It reveals that governance issues arise in various countries, therefore the different solutions implemented have resulted in the harmonization of practices. However, it finds that there are some practices that may never converge due to the cultural, social, historical and economic differences between nations.

International aspects

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New report on international corporate governance

Article Abstract:

The International Capital Markets Group has published a report on corporate governance entitled 'Who Holds the Reins?' The report concluded that establishing a standard for governance will not improve the manner in which companies are run. Instead, companies need to develop appropriate checks and balances and make investors understand the differences between companies.

Evaluation, Reports, International business enterprises, Multinational corporations

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