Recent amendments to the British Columbia Business Corporations Act (the “Act”) have placed additional requirements on British Columbia companies.
The Act has been amended to require British Columbia private companies to create and maintain a Transparency Register effective October 1, 2020. As of that date, all British Columbia private companies must keep and maintain a Transparency Register listing the company’s significant individuals, including individuals who have direct or indirect control of the company or its shares. The public will not have access to the Transparency Register and only current directors of the Company, law enforcement, and specific inspecting officials will have access to the Transparency Register (with some exceptions). The information collected must include full legal names, dates of birth, citizenship and last known addresses of all of the Company’s significant individuals.
The purpose of these recent amendments is to help companies, and in some cases authorities, identify the actual individuals who own and control British Columbia private companies, also known as “significant individuals. An individual can be a “significant individual” by having an interest or right, or a combination of them, in a significant number of shares:
- the right or ability, or combination of them, to elect, appoint or remove a majority of the directors of the company (through shareholder rights and/or by way of the articles of the company);
- interests or rights held jointly; and/or
- interests, rights or abilities exercised in concert under an agreement.
Once the Transparency Register is prepared, it will need to be monitored and maintained on an ongoing basis to ensure continued compliance. Failure to keep and maintain a Transparency Register will result in the Company not being in good standing with the Registrar of Companies and may result in further disciplinary action with government authorities.
We at Touchstone Law Group LLP understand that the COVID-19 pandemic has taken a financial toll on many British Columbians. Accordingly, in many cases we are able to offer payment plans to ensure that no one is prevented from taking steps to ensure that their legal affairs are in order due to financial struggles during this time. For more information about the projects discussed above or our payment plan, please feel free to reach out to one of our knowledgeable and helpful lawyers.
Author: Sasha Platz
This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250) 448-2637 or any of our lawyers practicing real estate law at the following:Una Gabie: firstname.lastname@example.org Jennette Vopicka: email@example.com Danielle (Dani) Brito: firstname.lastname@example.org Jane Otterstrom: email@example.com Sasha Platz: firstname.lastname@example.org