Even if a person is the sole director and shareholder of the company, the legal obligations regarding the keeping of the company’s book remain in force. Section 31(1) of the Business Corporations Act clearly states that every corporation must keep a book containing essential documents.
Chapitre S-31.1 Business Corporations Act
This requirement applies without exception, regardless of the ownership or management structure of the company. Thus, a solo rap entrepreneur who runs his own record company or label as a corporation must comply with these rules.
Compliance with these legal obligations is crucial to maintaining the separation between the individual and the corporate entity, which is one of the main advantages of incorporation.
Rap artists and entrepreneurs, here is an essential guide to manage the legal aspects of your business:
The Book of Society: Your Legal Bible
The Corporations Act requires your corporation to maintain a book containing critical documents. This book must include:
- The status of your label or company
- The rules of procedure
- Minutes of the meetings of the board of directors and shareholders
- The list of directors with their contact details and the duration of their term
- Information on the holding of shares
For federal labels or companies, similar rules apply, but be careful: the federal law provides fines of up to $5,000 in case of non-compliance.
Legal compliance for rap artists and entrepreneurs
In a world as dynamic and competitive as rap, it is easy to get carried away by the adrenaline of music creation and performance. However, behind every success lies an inescapable reality: the need to comply with legal obligations.
Not respecting these obligations could not only damage your reputation, but also result in severe financial penalties. In this article, we will explore the legal requirements that apply to you and how meeting them can help propel your career while protecting you from legal risks.
Annual obligations: stay up to date
Government records update
Each year, within six months of the end of your fiscal year, you must update your business information from the Business Register. This is crucial to protect your label or artist brand.
The annual meeting: a must-have event Hold an annual shareholders' meeting to:
- Present the financial statements of your label or company
- Elect directors
- Renew the auditor’s mandate (if necessary)
Protect yourself and your business
Quick update of changes
If you change admin or structure in your label, file an update statement within 30 days. This will protect you in the event of legal proceedings or problems.
The Register of Individuals with Significant Control (PIC)
For federal corporations, keep a record of the people who control 25% or more of your company’s voting shares or market value. Fines for non-compliance can be up to $200,000.
Practical tips for rap artists and entrepreneurs
Document your collaborations: Each featuring, production or collaboration must be accompanied by a clear contract.
Protect your brand: Register your artist or label name as a registered trademark.
Manage your copyright: Make sure you register all of your works with the collecting societies.
Keep a rigorous accounting: Document all your income, whether it comes from streams, concerts or merchandising.
Consult professionals: Do not hesitate to call on specialized professionals to help you in these steps and the drafting of your resolutions.
While these legal aspects may seem tedious and expensive, they are essential to protect your rap career and business. Rigorous legal management will allow you to focus on your art and your business development with complete peace of mind.
To be pondered!