Two shareholders had incorporated a corporation to operate a very successful business. They owned all of the shares of the corporation equally and personally and left profits in the corporation to finance its growth. To explore other complementary business opportunities, they needed access to retained earnings in the corporation.
We assisted in restructuring the business to incorporate a holding company and a sister company.
The restructuring permitted funds to be paid by way of dividend to the holding company and then loaned on a fully secured basis to the sister company to finance the acquisition of a complementary business. All of this was done on a tax-efficient basis.