Canadian Broadband's Poor Rating

In a recently released report commissioned by U.S. regulators, Canada, compared to other leading nations, rates very poorly in areas such as national broadband adoption, network capacity, and prices.

Employing results from a detailed survey conducted by Harvard's Beekman Center for Internet and Society, Canada ranked a disappointing 22nd place overall out of 30 countries. Japan, Sweden and South Korea ranked highest in the survey. The United States placed 13th in the survey.

The survey was commissioned as a basis for the U.S. Federal Communications Commission (FCC) to create a national next-generation broadband plan.

Broadband service is viewed as a key factor to enable economic growth that can benefit a wide range of intrinsic services in areas such as telemedicine and management of transportation and energy systems. It can also greatly reduce infrastructure costs for businesses.

European nations support open-access policies to spur competition among service providers. Open access allows new companies to lease lines from a network owner. This has proven to be a highly effective method of promoting competitive pricing to the consumer market. Currently, both the U.S. and Canada have yet to adopt this policy. Both nations rely upon competition between cable and phone companies to develop better and cheaper services. The Beekman Center study concludes that this method is highly ineffective for the short and long term of the industry.

Canada's CRTC (Canadian Radio-Television and Telecommunications COMMISSION) did implement open access rules in 1997 but, by allowing network owners to charge the highest lease rates on the planet, the CRTC effectively hampered any positive development. With rates as much as 70% higher than some nations, open access did not progress in Canada.

With a rating that has continued to decline over the last decade, Canada must seek to revamp its broadband policy if it wishes to compete with the world.

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Organizing Your Corporation – The Basics

The internal organization of your corporation is a vital initial step. Even the smallest of companies must adhere to these organizational steps. An orderly beginning will direct you to a well organized business.

Although you were required to list the first members of the corporation's board of directors when you incorporated, this group essentially gets the business "off the ground." At the first meeting of the corporation's shareholders, the permanent directors are elected. While all this may sound rather grandiose for a small company, keep in mind that your rights and obligations are no different than the "major players."

At an early date in the corporation's organization, one of the initial directors will call an organizational meeting. All the initial directors must receive notification in writing at least five days prior to the meeting. The notification must indicate the date, time, and location of the meeting.

What is the purpose of this meeting? Several items, which must appear on the agenda, may be discussed:

• creating by-laws of the corporation (the by-laws have to be ratified by the shareholders at the first annual meeting);
• adoption of forms of security certificates and corporate records;
• appointment of officers;
• authorizing issuance of shares and/or other types of securities;
• appointment of an interim auditor until the shareholders ratify the appointment;
• organize banking protocols; and
• discuss any outstanding pertinent issues.

Keep in mind that it is imperative to keep written minutes of all meetings as well as copies of all documents, agendas, correspondence, etc. An orderly set of records may be very useful for you at a later date. It also may be necessary in the future should there be any need for clarifications by government or other official agencies.

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Starting a Business - Business Registration or Incorporation?

One of the first decisions an entrepreneur or small business owner needs to make when incorporating is what form the business should have. There are generally three options in Canada, namely, sole proprietorship, partnership or corporation.

On our website there is good summary of each kind of Canadian business organization for review. I have also drafted a brief white paper on this topic. Also, I wrote an article about the selection of a business legal form for franchises.

You can also review our videos on YouTube on business registrations (sole proprietorships) and incorporations.

At the end of the day, while most businesses will select incorporation, this may or may not be the best way to start depending on your specific circumstances. As always, a competent lawyer and or tax specialist should be consulted.