Bill C-25 receives Royal Assent – Immediate and future impact
On May 1, 2018, Bill C-25, An Act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act and the Competition Act received Royal Assent.
A number of administrative amendments have come into force, resulting in changes in:
- Forms under the Canada Cooperatives Act – The statutory declaration, which is now part of the forms, no longer needs to be added to the application.
- The Guide on amalgamating cooperatives (Canada Cooperatives Act) ─ Changes have been made to the statutory declaration.
- Revival – Liquidators have been added to the list of interested parties who can apply for a revival.
- Exemptions found in the Canada Business Corporations Act to facilitate greater use of notice-and-access for documents required for shareholder meetings.
The remaining amendments proposed in the bill generally affect distributing corporations and cooperatives, and regulations will be drafted before they can come into force. They include:
- Election of directors, including majority voting, individual voting and voting for and against
- Use of notice-and-access for documents required for shareholder meetings, including financial statements, without needing to apply for an exemption
- Disclosure of diversity amongst directors and members of senior management.
The regulatory process will include a period of public consultation. Our clients will be notified through our website.
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