CBCA Reforms Receive Royal Assent

Progress towards amending the Canada Business Corporations Act continues with Bill C-25 receiving Royal Assent on May 1. The amendments are aimed, in part, at greater alignment between the CBCA and Canadian securities laws, TSX rules and certain international best practices. Key reforms affecting public CBCA corporations are diversity disclosure, majority voting requirements and internet posting of meeting materials (notice-and-access).

Timing of Implementation

The regulations under Bill C-25 are still in draft form and are expected to be finalized in the next 18-24 months. Market participants may provide comments on the draft regulations to Corporations Canada using the contact information in the Explanatory Note on Proposed Regulatory Amendments.¹ Next steps are for the Department of Justice to consult on the regulations, possibly resulting in revisions; the regulations will then be published in the Canada Gazette, along with a Regulatory Impact Analysis