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Is the corporation required to circulate the proposal submitted by a voting shareholder for an OBCA corp. on March 1, requesting the matter be raised at a special meeting on April 1?

1) Yes
2) No

1 Answer

5 votes

Final answer:

Whether a corporation is required to circulate a voting shareholder's proposal for a special meeting depends on the by-laws and provisions of the OBCA which might have minimum notice requirements.

Step-by-step explanation:

Is the corporation required to circulate the proposal submitted by a voting shareholder for an Ontario Business Corporations Act (OBCA) corp on March 1, requesting the matter be raised at a special meeting on April 1? The answer depends on specific provisions of the OBCA and the corporation's by-laws regarding the timeline and process for submitting shareholder proposals. According to the OBCA, a shareholder may submit a proposal to the corporation's management, and the management is usually required to include the proposal in the next meeting's agenda and circulate it to other shareholders. However, there are typically advance notice requirements for such proposals, which can vary. If the by-laws specify a longer notice period than the one-month period between March 1 and April 1 in this question, then the corporation might not be required to circulate the proposal for the special meeting on April 1. It is important to review the specific by-laws of the corporation in question to determine the correct course of action.

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