What is one disadvantage of a BCA company regarding multi-provincial operations?

Prepare for the Professional Legal Training Course Company Law Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for effective learning. Get ready for your exam!

In the context of a BCA (British Columbia Business Corporations Act) company conducting business in multiple provinces, the requirement to register extraprovincially is a significant disadvantage. When a BCA company chooses to operate outside of British Columbia, it must comply with the registration requirements of each province where it intends to conduct business. This means filing additional paperwork and paying fees to be recognized as a legal entity in those provinces.

Failing to register extraprovincially can lead to penalties such as fines, restrictions on the ability to bring legal actions, and the potential for a business to be shut down in the province where it is not registered. This process can introduce complexity and additional costs, which can deter businesses from expanding into new jurisdictions.

The other options presented do not accurately reflect disadvantages associated with multi-provincial operations for a BCA company. For example, while corporate taxes may vary, it's not unique to BCA companies nor does it represent a mandatory disadvantage specific to multi-provincial operations. Immediate dissolution in other provinces is not a consequence of conducting business there if proper registrations are maintained. Lastly, limited liability protections are a fundamental aspect of corporate law that applies universally to corporations, including those established under the BCA, and does not change with

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