Introduction
Concerns of the ease of money laundering and tax evasion have
haunted Canadian companies and the government for years. In
response to those concerns, the Canadian government is implementing
new rules on corporate governance through two new pieces of
legislation. The new rules apply to private, non-distributing
companies created under the federal Canada Business
Corporations Act
("CBCA").
The new legislation
In late 2018, the Canadian federal government passed Bill C-86,
or the Budget Implementation Act, 2018, No. 2,
("Bill C-86"). Bill C-86, among other
things, amends the CBCA and will come into force and
effect on June 13, 2019.
Then, on April 8, 2019, Bill C-97, the budget implementation
legislation for 2019 went through its first reading in Ottawa
("Bill C-97"). Bill C-97 also includes
amendments to the CBCA.
