As we discussed in our January 2019 bulletin, most private corporations organized under the Canada Business Corporations Act (CBCA) are now required to keep a register of individuals with significant control (ISC Register). Responding to feedback received since these requirements came into effect in June 2019, Corporations Canada and Innovation, Science and Economic Development Canada and Corporations Canada (the Departments) are considering whether regulations should be enacted to provide more guidance and clarity about the ISC Register regime. On March 9, 2020, they published a consultation paper on this subject.

The Departments are seeking feedback on the following questions, among others:

  • What steps should a corporation follow if it determines that there are no individuals who qualify as ISCs? Should it note that conclusion in its register?
  • Corporations subject to the ISC Register requirements must take reasonable steps to update their ISC Register at least once per year. What would constitute reasonable steps?

Comments are due by May 12, 2020. If you would like to discuss the Consultation Paper and its potential impact on your business, please contact us.

March 31, 2020