Problem
Ashley decided to incorporate her restaurant business. Her lawyer, Brendan, is advising her about the steps involved and the structure her corporation should take. So far, Ashley has two restaurants located within 25 kilometres of each other-the first was called "Ashley's Restaurant" and the second she named "Ashley's Too." Ashley's mother invested $50 000 in the business at the start but Ashley does not want her mother to be involved in business decisions. Ashley promised her mother a good return on her investment, but Ashley wants to stay in complete control of the business. Ashley also promised each of her chefs that there will be profit sharing opportunities after five years with the restaurants. State how brendan should respond to the following questions, and give reasons for your answers.
A. How many corporations should she incorporate?
B. Should incorporation occur under federal or provincial legislation?
C. Does Ashley have to decide on a name now?
D. What classes of shares should be issued with what rights and restrictions?