Solicitor Bar Exam Ontario Questions And Answers With Verified Study Solutions Rated A+

A and S incorporated MSB Inc each with 50% of the shares. What is the minimum number of directors required? - 1 director is required if the company is not an offering corporation. A bachelor dies owning a home which he leaves to his sister. Before the transfer what must happen? - to transfer property to a beneficiary the executor must first obtain a CRA clearance certificate and a certificate of appointment obtained. A bank accepts a power of attorney and relies on its validity when releasing funds to the attorney however the power of attorney has been revoked. Who has liability for the $5000 taken? - the bank is protected by s.13 of the SDA when honouring a POA which they have not received notice of revocation for. A Canadian shareholder receives $200 dividend income, how much income must be reported? - Where a Canadian taxpayer receives dividend income they must gross-up the amount received by 38% before reporting the dividend income. Therefore the taxpayer would report $238 dividend income. A CCPC can pay an eligible dividend to the extent it has a sufficient general rate income pool. - Yes A CCPC can pay an eligible dividend to the extent it has sufficient? - A CCPC can only pay dividends up to amount of their General Rate Income Pool calculation. A client demands an answer on short notice about how a recent court decision will impact their ongoing lawsuit on a similar issue. - A lawyer should advise the client in writing that a proper opinion cannot be rendered within the designated timeframe. A continuing power of attorney is terminated upon what event? - a continuing power of attorney is terminated if the court appoints a guardian of property. a controlling shareholder incorporated a second corp. then transferred all its shares into the new corp and forced approval of an amalgamation between the two corp.s under which the other shareholdersreceived redeemable shares only. - this is a squeeze out because the controlling shareholder is altering the share structure so that they are the only shareholder remaining after the amalgamation. A deceased failed to provide for biological son in Will. How would his son make a claim under Part V of the SLRA? - To make a claim under Part V of the SLRA the beneficiary must show the testator was under duress when making their Will. a landlord wants to increase rents for the summer because of the increase in heat and hydro but has already increased the rent the maximum amount this year. What option do they have? - a landlord may apply to the LTB for an AGI for extraordinary operating costs, capital expenditures, or security services. A lawyer has a client in the purchase of a small printing business. The seller does not want to retain legal counsel. What must the lawyer do? - The lawyer is not obligated to provide any advice or assistance to the unrepresented party. The lawyer must ensure that they unrepresented party understands their interests are not protected. A lawyer is asked to draft a Will for a hospitalized person by their spouse. What should the lawyer do? - A lawyer has an obligation to obtain instructions directly from the testator and to determine capacity of the testator prior to drafting a Will A lawyer is on joint retainer in a complex real estate transaction when one of the clients states they will be the only one on title. Who must the lawyer contact? - The lawyer must receive instructions from all parties in the joint retainer and the lender before altering title documents. A lawyer is unable to act for both the borrower and lender in a mortgage transaction unless? - The lender must be a registered lending corporation for a lawyer to represent both the lender and the borrower. A private corporation with 50 outstanding shares would like to redeem 25 shares at $10 per share. The PUC is $4 per share and the ACB is $5 per share. What would the income tax impact be on the purchaser for the redemption? - The shareholder recognizes a deemed dividend of $150 and a capital loss of $25.A publicly traded company is NOT required to comply with which corporate securities law? - A publicly traded company does not have to pay a quarterly or annual dividends to shareholders. A real estate lawyer who is acting for purchaser and lender learns of an addendum to the price. What must the lawyer do? - The lawyer in a joint retainer must provide a copy of any changes provided by one party to the other party. If a conflict arises the lawyer must withdraw from representing both parties. A shareholder is unhappy with the name of the corporation and would like to propose to amend the name. Who must approve the proposal? - Two-Thirds of the shareholders voting on a specific matter must agree by vote to a change in name proposal. A testator owned his home valued at $200,000 and RRSP's with no beneficiary, valued at $20,000. What is the amount of estate administration tax payable in probate? - $5 per $1000 for estates under $50,000; $15 per $1000 for estates over $50,000. A voting shareholder for an OBCA corp. submitted a proposal on March 1, requesting the matter be raised at a special meeting on April 1. Is the corp. required to circulate the proposal? - A corp. is not required to circulate a shareholder proposal if 60 days notice is not given. A young lawyer gives advise about power of attorney's at a local retirement home. What must the lawyer do to comply with the Rules of Professional Conduct? - A lawyer must be careful not to provide legal advice or acquire phantom clients when speaking about legal topics in public. A young lawyer in Thunder Bay is asked to draft a Will. Who do they ow a duty to? - The estate lawyer owes a duty to the testator and the clients beneficiaries. A' recently died. At the time of death he had not will. What right does As common law spouse have? - A common law spouse only has right to make a claim against the estate for support as a dependent. ACB - adjusted cost baseAccording to the law society, what is NOT a recommended step for a lawyer when faced with an ethical dilemma? - A lawyer is not recommended to discuss ethical dilemma's with a colleague. Be careful with wording, the rule states that a lawyer is recommended to speak with a senior practitioner. According to the OBCA what applies to short form amalgamations? - The approval by a resolution of directors for each of the amalgamating corporations is required under the OBCA. after searching the title you find a violation of the Planning Act. What type of requisition letter is required? - a root of title requisition is required to address issues arising from title search which indicate planning act violations. An interim receiver is most similar to what legal persona? - Interim receivers may have broad powers similar to a receiver general appointed under the CJA. An offering corporation must have how many directors? - an offering corporation must maintain at lease 3 directors. At a hearing for bankruptcy discharge what kind of orders can be issued against an individual? - the court must decide whether to postpone a discharge hearing, refuse a discharge or may issue an absolute discharge, conditional discharge or suspended discharge. B is the only director of E inc which has 3 shareholders. B wants to sell his small business to the corporation for $5mil. What must counsel for E inc do? - a shareholders meeting is required to approve transactions for purchase, sale, or transfer of significant assets. BIA - Bankruptcy and Insolvency Act Can a Bank state that all fixtures and chattels are included in the security for a mortgage against a restaurant? - A bank may take charge over any specified inventory and assets with a PPSA. Can a lawyer represent the purchaser and lender in a single transaction if the lender is an unrelated, private person? - No if the loan is for more than $50,000 and the lender is not a registered al gain calculation - PUC greater than ACB capital gain calculation - redemption proceeds - deemed dividend - ACB capital loss calculation - ACB greater than PUC Correctly describe an LLP. - An LLP is a partnership which provides limited protection from personal liability. A person may be a general partner and a limited partner at the same time. deemed dividend calculation - redemption proceeds - corporation PUC describe three ways in which priorities set out in the PPSA can be altered where there is more than one significant secured creditor of a debtor. - three ways the personal property security act priorities can be altered by multiple creditors include priority agreements, subordination agreements, intercreditor agreements. directors must have what qualifications? - a director must be an individual, who is over 18 yo, of sound mind and not bankrupt. G is a shareholder of D Inc that is unhappy with the name and would like to propose to amend it to S Inc. Who must approve this proposal? - 2/3s of the shareholders voting at a shareholder meeting may approve a name change proposal. GRIP - General Rate Income Pool. Taxable income for a CCPC which is not eligible for SBD or tax deferral. GSA - general security agreement - A GSA will usually contain representations and warranties and positive and negative covenants. But a GSA cannot create a valid legal charge over real property interests. How does the BIA define person? - person is broadly defined but does not include banks, insurance or trust companies, loan companies, or railways.