Document background
The Resolution of Sole Shareholder is a crucial corporate governance document used when a Canadian corporation has only one shareholder who needs to make formal decisions about corporate matters. This document is commonly required when making significant corporate decisions such as changing directors, approving financial statements, declaring dividends, or authorizing major transactions. It complies with requirements set forth in Canadian corporate law, including the Canada Business Corporations Act (CBCA) or provincial equivalents. While regular corporations might need shareholder meetings and voting procedures, a sole shareholder corporation can make decisions through written resolutions, making this document type particularly efficient for corporate governance. The resolution serves as official evidence of the shareholder's decisions and can be required by banks, regulatory bodies, or other third parties as proof of corporate authorization.
