Ontario Barrister and Solicitor Practice Exam

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What is not a component of a corporate arrangement under the OBCA?

  1. Share exchange

  2. Amalgamation

  3. Automatic dissent rights for shareholders

  4. Dissolution

The correct answer is: Automatic dissent rights for shareholders

The OBCA refers to the Ontario Business Corporation Act, a set of rules and regulations governing corporations in the province of Ontario, Canada. A corporate arrangement under the OBCA must involve one or more of the following components share exchange, amalgamation, or dissolution. Share exchange involves the transfer of shares between corporations, while amalgamation is the merging of two or more corporations. Dissolution is the winding down and eventual termination of a corporation. Automatic dissent rights for shareholders, on the other hand, is not a required component of a corporate arrangement under the OBCA. This means that shareholders do not have the automatic right to dissent (or object) to certain corporate actions under this act. Instead, dissent rights must be specifically granted by the corporation. Therefore, automatic dissent rights for shareholders are not a component of a corporate arrangement under the OBCA.

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