Entrepreneurship & Small Business

Declaring Dividend Documentation - Just eventual T5 or proof of shareholder?

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  • Apr 14th, 2012 12:10 pm
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Newbie
Oct 20, 2009
29 posts

Declaring Dividend Documentation - Just eventual T5 or proof of shareholder?

When I set up my corporation, I created Class A and Class B shares. Within the first month, I created corporate resolutions giving myself 100 Class A shares and my wife 10 Class B shares. Its now the second year of incorporation and I want to declare a Class B dividend. I understand the mechanics of doing this, but the thing I wonder about is that besides my own printed and signed corporate resolutions, there is no outside documentation that my wife is a shareholder of Class B shares. The only outside "proof" of any shareholders is the Schedule 50 I filed for my first year taxes which only listed myself as a shareholder (as I was the only one who owned > 10% of the shares).

I tried to setup everything properly. Hopefully the above is correct. My year-end isn't till Dec. 31st. My questions are: 1) Do I need to inform the government that my wife is a shareholder of Class B shares before declaring a Class B dividend? 2) Is the only necessary government documentation (besides corporation declaration which the government won't see unless I'm audited) of the declared dividend the eventual T5 that is created?

Thanks.
1 reply
Deal Addict
User avatar
Mar 28, 2004
3899 posts
56 upvotes
A good accountant will help & do all of this.
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