The Freestanding Company Limited is the owner of a number of commercial buildings in a large Ontario city. One of the directors, Denise, suggested that the corporation purchase a large apartment building. Another director, Zaida, was the owner of a one-third interest in the building. If the corporation must sell securities to the public to raise the capital, a prospectus must be prepared and approved by the Ontario Securities Commission before a sale of securities may be made.

Question

Quizplus · Accepted Answer

In Ontario, if a corporation wishes to sell securities to the public to raise capital, it is required to prepare a prospectus and have it approved by the Ontario Securities Commission, as per the Ontario Securities Act. This ensures that all potential investors have access to essential information about the investment.

The Freestanding Company Limited Is the Owner of a Number