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Transferring the principal of a corporation

Is there any concerns with transferring the principal of a corporation into someone else’s name. The Existing corp. has only one shareholder who is contemplating personal bankruptcy but not corp. bankruptcy.

Posted from: Ontario

One Response to “Transferring the principal of a corporation”

Doug Stuive, CA | Trustee | CIRP said...

A transfer of this kind is a reviewable transaction. This means the trustee would need any and all documentation relating to the corporation. They would be looking at the value of that corporation to make sure there are no issues that would affect the bankruptcy. If the shares in your corporation hold any value then a transfer of this kind would become an issue.