The federal government has enacted a requirement for corporations to file beneficial ownership information with Corporations Canada, with some of this information being made publicly available, according to Industry Minister François-Philippe Champagne. The goal is to improve corporate transparency as part of the government’s efforts. Beneficial owners or individuals with significant control are those who own, control, or direct at least 25% of shares of a corporation either individually or jointly with other individuals.
Corporations governed by the Canada Business Corporations Act have been mandated to maintain a register of individuals with significant control for the past four years. Under the new rules, businesses must now begin filing the information with Corporations Canada on the day they incorporate, within 30 days of when they amalgamate with another corporation, or when they file their annual return. They must also file any change to their ownership information within 15 days. Minister Champagne stated that the new filing rule will help establish a database of beneficial ownership information, which will strengthen the safety and economic interests of Canadians.