Are you ready for changes to the Canada Business Corporations Act?
Starting June 13. 2019, changes to the Canada Business Corporations Act (CBCA) announced under Bill C-86 will take effect. In an effort to combat tax evasion, money laundering and terrorist financing, the government of Canada will now require most private CBCA companies to create and maintain a Register of Individuals with Significant Control (ISC). The company must keep the Register with the company’s other corporate documentation at the company’s Registered Office, and it must be available for inspection upon request.
Unlike former rules that required companies to show only the name and last known address of a shareholder, companies will now have to drill down to the beneficial owners of such shares and will have to record such things as the name, date of birth and last know address of each individual having significant control (ISC) of the company, as well as their tax residency. Generally, anyone with direct or indirect control of 25% of the company’s shares qualifies as an ISC.
Companies are compelled to gather and record this information and to certify that they have done so. Companies and shareholders who fail to disclose precise and accurate information can face fines or even imprisonment.
Don’t be caught unprepared – all corporations must be compliant by June 13th. Contact your lawyer and schedule an appointment to bring your corporate records up-to-date.
If you have any questions about how we can help you, please contact us. Click here to schedule a no-obligation consultation, or you can call us directly at 613-737-4000. Find out how you can benefit from our experience today.