Federal Corporations: Significant Changes To Disclosure Requirements Coming Into Force In June, 2019

Bill C-86, the Budget Implementation Act, 2018, No. 2 (the "Bill") is scheduled to come into force on June 13, 2019. The Bill will make significant changes to various federal legislation, including the Canada Business Corporations Act (R.S.C., 1985, c. C-44) (the "CBCA"). In a trend towards more transparency, the CBCA will require corporations to have complete and up-to-date information about who ultimately controls each private corporation. As such, all corporations governed by the CBCA (except public corporations) will be required to maintain detailed registers identifying all individuals with "significant control" over the corporation.

What is "significant control"?

An individual with "significant control" will include individuals who are registered holders, beneficial owners or have direct or indirect control or direction of: