Ontario Barrister and Solicitor Practice Exam

What is continuance under the OBCA used for?

1. For a company to extend its business operations

2. To allow a company to continue by transferring from a foreign jurisdiction

3. To renew a company's charter

4. For changing a company's corporate structure

The correct answer is: To allow a company to continue by transferring from a foreign jurisdiction

Continuance under the OBCA is the process by which a company can transfer from a foreign jurisdiction to the province of Ontario. This allows the company to continue its operations under the laws and regulations of Ontario, rather than its previous jurisdiction. Option A is incorrect because it refers to extending business operations, which is typically done through other means such as mergers or acquisitions. Option C is also incorrect as renewal of a company's charter is not specific to the OBCA and can be done in other ways. Option D is incorrect as changing a company's corporate structure falls under a different process known as amendments. Therefore, option B is the correct answer as it accurately describes what continuance under the OBCA is used for.