Ontario Updates Director Residency Requirements

As of July 5, 2021, corporations incorporated under Ontario's Business Corporations Act will no longer be required to have at least 25% of directors be resident Canadians.

Effective July 5, 2021, subsection 118(3) of Ontario's Business Corporations Act ("OBCA") will be repealed, with the effect that corporations incorporated under, or continued into Ontario under the OBCA, will no longer be required to have any resident Canadians on their Board of Directors. Prior to July 5, 2021, the OBCA required that at least 25% of the directors of an Ontario corporation be "resident Canadians", or where there were fewer than four directors, that at least one director must have been a "resident Canadian".