Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only.  If you need legal advice with respect to complying with anti-spam or privacy legislation,  you should seek professional assistance (e.g. make a post on Dynamic Lawyers).

So Canada’s old proposed Anti-Spam laws (found in Bill S-235, An Act concerning unsolicited commercial electronic messages) did not go anywhere.  But that’s not the end of that.  This year, the Senate is developing a bill – namely, Bill S-220 An Act respecting commercial electronic messages – that may ultimately become Canada’s anti-spam legislation.  This will be the third time that the government has tried to address the issue of spam – first through Bill S-235, then through Bill s-202 An Act respecting commercial electronic messages (neither of which went anywhere)

At the present time, Bill S-220 has had 2 readings in the Senate and committee meetings (Transport and Communications committee) have taken place.  Next, a report will be presented and debated on before the Senate has a chance to read the Bill again.

So in a nutshell, here’s what Bill S-220 proposes to do (if it becomes law):

Requirements for commercial electronic messages (e.g. an advertisement e-mail):

• They must clearly and accurately identify the sender, contain readily-accessible and accurate heading and routing info, and include info as to how the recipient can contact the person sending the message.
• They must include an accurate subject line.
• They must include a functional unsubscribe facility and a clear statement to the effect that unsubscribing can be done.

Prohibitions in the Bill:

• No person can send a commercial electronic message unless the recipient has consented to receiving the message.
• Implied consent  cannot be inferred from the fact that the recipient’s e-mail address has been published elsewhere or has been generally available to the public.
• A recipient can withdraw their consent.
• It is illegal for someone to offer to supply, supply or use e-mail or address-harvesting software or a harvested-address list.
• No person shall impersonate a trusted source.
• No person shall send out commercial electronic messages that include or constitute false representations (e.g. false representations that the commercial electronic message is being sent by or on behalf of another person, etc.)

Interestingly, there is a duty on every person who knows or ought to know that their business will be advertised or promoted in a commercial way contrary to the Act and who receives or is expected to receive an economic benefit to take reasonable measures to prevent the sending of the message and report any contravention to authorities.

With respect to enforcing these and other provisions of the Bill, anyone who sends a commercial electronic message without the recipient’s consent may be convicted of an offence and liable to a find not exceeding $500,000 and for a second and subsequent offence, to a find not exceeding $1.5-million.

There are other specific offences and fines related to requirements, duties, and obligations found in Canada’s proposed Anti-Spam laws.   Interestingly, apart from being prosecuted under this proposed bill and having to pay a fine, an individual or business could be sued in a civil action for breaching the proposed Act.

Notwithstanding that this Bill has not yet attained the status of law, at the present time, private individuals and companies still need to comply with the Personal Information Protection and Electronic Documents Act (PIPEDA for short), which imposes obligations and liabilities with respect to the collection, use, and dissemination of third party personal information without those parties’ knowledge or consent.

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Please keep in mind that this is not legal advice.  The information provided herein is for educational purposes only. If you would like to get in touch with a lawyer to help you draft, interpret, negotiate or resolve a dispute about a joint venture, then you are encouraged to seek a professional (e.g. make a post on Dynamic Lawyers).  We have Toronto and Ottawa lawyers who can assist you in this regard (I would know, I’m one of them!).

So this blog will deal with the basics of a joint venture agreement or contract.  In other blogs, I’ll get down to the nitty gritty.

Definition
Plaint and simple, a joint venture is a contract between two or more parties to share resources, knowledge, skills, etc. towards a common objective.

Parties
As usual in these types of agreements, the parties are identified at the get-go (make sure this is done properly or else your contract won’t be worth the paper it’s written on!).

Recitals
This is the background story you want to tell that leads up to the formation of the joint venture.  It could go something like: Party X does Y and has Z.  Party A does B and has C.  The two would now like to join forces to make even more $$$.  So they’re agreeing to have a joint venture in accordance with the terms and conditions set out in the joint venture agreement or contract…

Definitions
It’s a good idea to set out the definitions you’re going to be relying upon near the top of the joint venture agreement (for ease of reference and good organization).  You could include definitions here about “Confidential Information” (assuming there will be confidential information passed between the parties as a result of the joint venture), what constitutes “Force Majeure” (e.g. act of God that relieves a party of liability under the agreement in certain circumstances), etc.

Business Structure
The joint venture agreement or contract will generally state how the joint venture is structured.  Is it simply two separate entities acting in concert through the joint venture agreement or contract?  Will there be a new corporation formed?  Will there be a partnership formed?  Will that partnership be a general or limited liability partnership?  For more discussion about the general forms of business one can structure in Ontario, check out this free information about business structures we’ve been accumulating.

Nature of the Relationship
So will the joint venturers be partners (capable of binding each other), corporate shareholders, or simply joint venturers (i.e. their rights and obligations are limited to the terms of the joint venture agreement or contract).

Term and Termination
How long will the joint venture last for and what events give rise to its premature termination?  Will the parties simply be able to give each other notice?  Will the joint venture dissolve by operation of law, by one party filing for bankruptcy, by one party attempting to illegally assign their interest in the joint venture to a third party, etc.?  Again, you should consult with a lawyer to find out what kinds of things typically go in this section.  Also important is what to do in the even of default.  Does one of the joint venturers become liable to pay the other if they are at fault?  Who determines fault and according to what test (e.g. sole and absolute discretion)?  There’s a lot to think about here…

Joint Venture Assets and Benefits
How will these things be deal with?  Will there be a percentage of ownership?  Will the benefits be based on revenues or profits?  Can these interests be assigned?

Operations
How will the joint venture be operated on a day-to-day basis?  Will the joint venture committee have the power to enter contracts on behalf of the joint venture?  Perhaps the joint venture committee will create a new corporation to take on a certain responsibilities and simply own equally the shares of the new corporation.  That new corporation would operate as a separate business, but its shareholders would be the joint venturers (who would elect the directors, who in turn would appoint the day-to-day officers).  This would be a good place to put reporting and record-keeping requirements too.

Joint Venture Responsibilities
Here, we get to the nitty gritty of who will be responsible for what in the joint venture. Separate paragraphs will be needed for each of the parties.

Joint Venture Management
Will there be a committee?  Will representatives from each of the parties be on the commitee?  Will there be a chairperson?  How will meetings be managed, votes and decision made?  Will there be direction from owners and delegation to the committee?  In my opinion, and as I’ve previously blogged about, businesses should be run as dictatorships with consultants, not as democracies (too many voices means things won’t get done).  

Representations and Warranties
What kinds of true, fair, and complete statements must the parties make to induce the other parties to enter the agreement?  The parties want to know that their joint venturer partners have the authorization and operational wherewithall to do what it is they are about to do.  If these representations and warranties no longer hold true, then what’s the consequence?  Notice?  Termination?  This should be spelled out here…

Liability and Indemnification
Will the joint venturers try to limit their liability from each other in connection with the joint venture?  Will they indemnify each other for their own wrongdoing – whether in contract, tort, negligence, misconduct, breach of statute or otherwise?

General Terms and Conditions
This section of the Joint Venture Agreement will deal with things like (which I’ve previously touched on in teh context of an independent contractor agreement):

• Notices
• Entire Agreement
• Governing Law
• Interpretation
• Assignment
• Waiver
• Cumulative Remedies
• Counterparts
• Enurement
• Entire Agreement
• Time of Essence
• Independent Legal Advice
• Force Majeure
• Severability
• Survival
• Currency

written by admin \\ tags: agreement, assets, bankruptcies, bankruptcy, blog, breach, business, circumstances, confidentiality, contracts, corporation, indemnification, lawyer, lawyers, liabilities, negligence, negotiating, Negotiations, partnership, percentages, relationships, separation, shareholder, shareholders, shareholdings, toronto

My final blog in anticipation of being on Goldhawk Live tomorrow at 7:00 p.m. deals with the question: do I really need a lawyer?  The answer, in my humble opinion, is not so straightforward.  In some cases, a lawyer would be highly recommended (e.g. you get charged for a serious crime or sued for lots of money or child custody is at stake) whereas in other situations, the tools may be readily available to do without their services.  Let’s look at one example of incorporating which I will use to drive home the “it depends” message.

Incorporation
There are enough service providers and information out there to help you incorporate a business yourself without a lawyer.  Just do some research on articles of incorporation, by-laws, annual returns, shareholders/directors/officers, meeting minutes, corporate taxes, etc. and you too will know how to incorporate and maintain a business.  In fact, just check out this blog and you’ll find a lot of what you need to know about each of these topics.  Here is a great government website from Corporations Canada that has 60 pages worth of valuable information on how to incorporate a business federally.

But what if you need specific by-laws concerning director liability and insurance (which you can’t find in some boilerplate precedent)?  What if you need a special class of shares for a certain group of shareholders with specific rights attached?  What if you need a shareholders’ agreement with share transfer restrictions built in place?  What if you need help getting the money out of your corporation while paying the least amount of taxes?  What if you want to expand your business and are wondering which legal vehicle (e.g. division, subsidiary, franchise, etc.) is ideal? …  You see where I’m getting at?  You will undoubtedly have questions about your corporation and where it is heading and a lawyer MAY BE NEEDED to get answers to your particular situation.  In fact, if you went ahead and incorporated without consulting with a lawyer, but then need to amend your articles of incorporation after consulting with a lawyer, you will need to pay a few hundred dollars more in government fees to do so!  So you could have saved time and money by consulting with a lawyer first.

written by admin \\ tags: articles of incorporation, articles of incorporation by laws, boilerplate, corporate taxes, corporations canada, director liability, government website, how to incorporate a business, lawyer, liabilities, share transfer, shareholder, shareholders agreement, shareholdings, transfer restrictions

Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only.  If you need legal advice with respect to getting a separation agreement in Ontario, you should seek professional assistance (e.g. make a post on Dynamic Lawyers).  We have Toronto and Ottawa family law lawyers registered on Dynamic Lawyers who can offer information, advice, and assistance with respect to your separation agreements.

The Ontario Family Law Act governs separation agreements and their validity. Separation agreements must be in writing, signed and witnessed [s. 55(1) of that Act]. Independent legal advice is not a formal requirement, but highly advisable to prevent challenges to the contract on other grounds.

Separation agreements or certain provisions therein can be contested and declared invalid if:

1. a party failed to disclose to the other party significant assets or significant debts or other liabilities which existed when the separation agreement was made;
2. a party did not understand the nature or consequences of the separation agreement; or
3. the agreement or a provision therein was not made in accordance with the law of contract (i.e. there was fraud, duress, undue influence, the contract is unconscionable, etc.).

Remember: while separation agreements resolve family matters when you separate, they do not legally end your marriage. The only way to do this is to get a divorce. Only a court can give you a divorce. To proceed with an uncontested divorce, a party will need to complete and submit the divorce forms, pay the required court fees, and follow the court rules and procedures. It is always advisable to retain legal counsel to avoid potential pitfalls in obtaining a divorce that will not later be contested.  To know more about getting an uncontested divorce in Ontario, read my previous blog.

written by admin \\ tags: divorce forms, duress, family law act, family law lawyers, family matters, independent legal advice, information advice, legal counsel, liabilities, ontario family law, ottawa family law lawyers, potential pitfalls, separation agreement, toronto family law lawyers, uncontested divorce, undue influence, validity

Please keep in mind that this is not legal advice.  The information provided herein is for educational purposes only.  If you believe you require assistance in deciding which business structure is best for you, then you are encouraged to seek a professional (e.g. make a post on Dynamic Lawyers).

In this blog, I’ll be discussing limited liability partnerships, which can be distinguished from general partnerships (discussed in another blog).

Defined
Ontario’s Partnership Act governs limited liability partnerships. A limited liability partnership is a partnership designated as such (s. 44.1). As of July 1998, amendments to the Partnerships Act permitted professions (such as lawyers) to practice in the form of limited liability partnerships.

Ease of Creation
Ontario’s Business Names Act provides that “[n]o persons associated in partnership shall carry on business or identify themselves to the public unless the firm name of the partnership is registered by all of the partners” (s. 2(3)).

In addition to registering the general partnership’s name in the same manner as a sole proprietorship’s, the partners will generally enter into a partnership agreement to modify the default rules prescribed by the Partnership Act. This partnership agreement will usually outline the relationship of the partners to each other and to third parties.

The partnership agreement will also deal with issues such as “term of the agreement, names of the partners, who owns which of the assets, name of the partnership and who owns the name, capital contributions if any, how profits are to be shared, how the partnership is to be managed, how holidays and illnesses are to be handled, liabilities and disability insurance, admission and withdrawal of partners, how the partnership is to be run and conditions and mechanics for dissolution of the partnership” (source: Wendy E. Oughtred, Going It Alone: A Start Up Guide for the Sole Practitioner, (Aurora, Canada: Canada Law Book Inc., 1995), p. 51).

The partners must also establish standards for fee distribution within the firm, including the means of rewarding lawyers for bringing business to the firm, as well as the lawyers who actually work on cases.

Continuity
Unless the partnership agreement provides otherwise, a limited liability partnership can be dissolved in a number of ways, including:

• At the expiration of the partnership’s term, adventure, or undertaking (if specified) (s. 32(a) and (b) under the Partnership Act);
• By the death or insolvency of any of the partners (s. 33(1) of the Partnership Act);
• By the happening of an event which makes it illegal for the partnership to continue (s. 34 of the Partnership Act); and
• On application by a partner in respect of prescribed circumstances (s. 35 of the Partnership Act).

Liability
Unlike a general partnership – where the partners are liable for debts and liabilities arising from the negligent acts of all partners – the partners in a limited liability partnership are not personally liable for the negligent acts of another partner or an employee who is directly supervised by another partner (s. 10(2) of the Partnership Act). However, the partnership assets continue to be at risk for the negligence of the partners and employees (s. 10(3.1) of the Partnership Act). A limited liability partnership is required to carry insurance coverage for each of its member.

Taxation
Like a general partnership, a limited partnership is a flow-through entity, which means that income earned by the partnership is passed on to the partners without being taxed at the partnership level. “If a partnership earns dividend income, taxable capital gains, or realizes a business loss, these sources would be received as dividend income, taxable capital gains, or business losses in the hands of the partners” (source: Clarence Byrd and Ida Chen, Byrd & Chen’s Canadian Tax Principles, 2006-2007 ed. (Toronto, Canada: Pearson Prentice Hall, 2007), p. 863.). The income, losses, and tax credits of the firm is first determined and then allotted to the individual partners in accordance with their equity interest in the partnership (as per the partnership agreement). The income earned by the individual partners will be fully taxed at their personal income tax rate (source: Clarence Byrd and Ida Chen, Byrd & Chen’s Canadian Tax Principles, 2006-2007 ed. (Toronto, Canada: Pearson Prentice Hall, 2007), p. 862). The fiscal year end of the partnership will be same as the individual partners – namely, December 31st of each year (sources Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), ss. 96(1) and 249.1(1). See also Clarence Byrd and Ida Chen, Byrd & Chen’s Canadian Tax Principles, 2006-2007 ed. (Toronto, Canada: Pearson Prentice Hall, 2007), p. 862.

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There are over 17,000 individuals in Toronto who can call themselves a Toronto attorney.  Each Toronto attorney typically has his or her own specialty.  The day of the general practitioner is not as it once was (and is slowly fading away).  In fact, specialization is a preferred strategy to earn above-average returns in any given industry.  Besides, think of how hard it would be for a lawyer who ‘does it all’ to keep up to date with the changing laws in every given legal area.  It’s way too difficult and that’s where negligence cases may arise.

In any event, I thought I’d spend some time discussing the various types of Toronto attorneys that you can come across on a day-to-day basis.  Here’s the first breakdown of types of Toronto attorneys (please keep in mind that this list of the types of lawyers out there is not exhaustive):

• Toronto Real Estate Attorneys: help you buy and sell residential, investment, farm, cottage, recreational, condominium, and cooperative properties.  They also you get a mortgage financing and refinancing as well.

• Toronto Personal Injury Attorneys: help you litigate, settle, or otherwise resolve claims arising from:
  • accident benefits claims
  • dog bites
  • disability claims
  • medical malpractice
  • motor vehicle accidents
  • negligence actions
  • personal injury claims
  • product liability
  • slip and falls

• Toronto Business Attorneys: help you to incorporate and organize, merge/amalgamate, and dissolve your business.  They can help prepare, review, interpret, revise, negotiate, litigate, and resolve the following business documents:
  • shareholder agreement
  • partnership agreement
  • joint venture agreement
  • franchise agreement
  • commercial leases
  • business acquisitions
  • regulatory compliance
  • constructions contracts
  • employment agreements

• Toronto Wills and Estates Attorneys: they offer services from a basic will and powers of attorney  to more complicated tax-planning structures, such as inter-vivos trusts and estates freezes.  They can also help personal representatives in the administration and distribution of estate assets.  Finally, they can litigate on behalf of beneficiaries or the estate trustee on issues such as mental capacity of the testator, validity of a will, etc.

• Toronto Family Attorneys: they can help you with your marriage breakup by drafting a separation agreement.  They can also help you with issues such as divorce, spousal and child support, child custody, possession of the matrimonial home, and the equalization of net family property.
  

• Toronto Criminal Defense Attorneys: they can help represent you against government bodies that have charged you with criminal or provincial offences (e.g. careless driving), including:
  • DUI (driving under the influence)
  • assault
  • sexual assault
  • fraud
  • theft

written by admin \\ tags: accident, accidents, agreement, attorneys, beneficiaries, business, business acquisitions, commercial leases, contracts, criminal, custody, defense, Dynamic Lawyers, family, franchise agreement, fraud, incorporation, incorporators, injuries, injury, investment farm, joint venture toronto personal actions, law, lawyer, lawyers, liabilities, litigants, litigation, marriage, mentality, negligence, negligence cases, negotiating, Negotiations, offence, partnership, personal injury claims, practitioner, preferred strategy, property, revisions, separation, shareholder, shareholders, shareholdings, testator, toronto, toronto attorney, toronto attorneys, toronto business, toronto real estate, Wills and Estates

Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only.  If you need legal advice with respect to complying with anti-spam or privacy legislation,  you should seek professional assistance (e.g. make a post on Dynamic Lawyers).

Canada’s Anti-Spam Laws are found in the proposed Bill S-235, An Act concerning unsolicited commercial electronic messages.  That’s right: I said “proposed”.  It’s not passed into law yet.  In fact, at the time of writing this blog, the Bill had only been introduced into the Senate (first reading) on May 7, 2008 and had been debated at 2nd reading on May 13, 2008.  You can view the status of the Bill here.  So where does that leave us?  Well, private individuals and companies still need to comply with the Personal Information Protection and Electronic Documents Act (PIPEDA for short), which imposes obligations and liabilities with respect to the collection, use, and dissemination of third party personal information without those parties’ knowledge or consent.

So how would Canada’s proposed Anti-Spam Laws work?   The following information is a brief summary of certain provisions based on the current reading of the text of the Bill (remember: it may get changed if and when it becomes law).

Requirements for commercial electronic messages (e.g. an advertisement e-mail):

• They must clearly and accurately identify the sender, contain readily-accessible and accurate heading and routing info, and include info as to how the recipient can contact the person sending the message.
• They must include an accurate subject line.
• They must include a functional unsubscribe facility and a clear statement to the effect that unsubscribing can be done.

Prohibitions in the Bill:

• No person can send a commercial electronic message unless the recipient has consented to receiving the message.
• Implied consent  cannot be inferred from the fact that the recipient’s e-mail address has been published elsewhere or has been generally available to the public.
• A recipient can withdraw their consent.
• It is illegal for someone to offer to supply, supply or use e-mail or address-harvesting software or a harvested-address list.
• No person shall impersonate a trusted source.
• No person shall send out commercial electronic messages that include or constitute false representations (e.g. false representations that the commercial electronic message is being sent by or on behalf of another person, etc.)

With respect to enforcing these and other provisions of the Bill, anyone who sends a commercial electronic message without the recipient’s consent may be convicted of an offence and liable to a find not exceeding $500,000 and for a second and subsequent offence, to a find not exceeding $1.5-million.

There are other specific offences and fines related to requirements, duties, and obligations found in Canada’s proposed Anti-Spam laws.   Interestingly, apart from being prosecuted under this proposed bill and having to pay a fine, an individual or business could be sued in a civil action for breaching the proposed Act.

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