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CHAPTER 2FORMS OF BUSINESS ORGANIZATIONSBusinesses in AtlanticCanada can operate througha variety of legal entities,including companies, soleproprietorships, partnerships,limited partnerships, jointventures and co-operativeassociations.COMPANIESOverview of IncorporationA company is a legal entity that is separateand distinct from the shareholders whocontribute to the company’s capital. Theshareholders exercise ultimate control overthe management of the company throughthe election of directors. The directors areresponsible for the day-to-day managementof the business and affairs of the companyand have a duty to act honestly, in goodfaith and in the best interests of thecompany. Companies enjoy perpetualsuccession, meaning that the existence ofthe company continues despite the death ofany or all of its shareholders. Furthermore,companies are afforded all the rights of aForms of Business Organizations 12

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