On December 13, 2018, Bill C-86, the Budget Implementation Act, 2018 No. 2, received Royal Assent. This bill brings significant changes to the Canada Business Corporations Act (CBCA) requiring corporations to keep a detailed register of information about individuals who have significant control of the corporation. These changes come into effect on June 13, 2019.
Currently, federal non-distributing corporations (“private companies”) must maintain a central securities register to record:
Following the changes in Bill C-86, private companies must identify individuals with “significant control” over the corporation. Individuals with “significant control” are defined as:
To determine individuals with “significant control” each federal non-distributing corporation will be required to maintain the New Register, which contains the following for each relevant individual:
Penalties for non-compliance upon conviction of an offence include a fine not exceeding $200,000 or imprisonment for a term not exceeding six months, or both. If you have any questions about Bill C-86 or your company’s requirements, reach out to your Account Manager at Bateman MacKay.
Sign up for our newsletter and receive tax, accounting, and COVID-19 resources for your business!