A crucial part of Alberta’s Recovery Plan is attracting investment, which will help further diversify the province’s economy. In keeping with that goal, proposed amendments to the Business Corporations Act will open more doors by providing the framework and mechanisms that businesses need.
Alberta’s economy is rebounding and the province is already attracting job-creating private investment, including billions of dollars announced in the past week alone. Alberta’s government continues to work with groups, businesses and experts to identify additional actions that can be taken to further grow our economy through increased investment.
“There are many advantages to investing in Alberta and we’re continuing to build on that strong foundation. When innovators, entrepreneurs and job creators are looking to incorporate, invest, and grow their business, we want to be at the top of their list. These changes will help solidify our position at the top.”
“Alberta is jumping to the top of the list in Canada with these changes. If you’re looking to invest in Canada, these changes make Alberta the logical destination to start and grow your business.”
The Business Corporations Act (BCA) sets out the rules and requirements for a business to incorporate in Alberta. Proposed changes would mean that Alberta’s legislation is in line with other provinces and, wherever possible, make the province a leader over other jurisdictions. Ensuring that the legislation is up to date and provides the framework and mechanisms to encourage incorporation, investment, operation, growth and success is important to helping Alberta attract further private sector investment and diversify our economy.
“The proposed changes reflect not only the best of what other jurisdictions have done, but what was requested through the government’s consultations. Alberta’s updated Business Corporations Act will help make the province more attractive and competitive.”
The proposed amendments would also modernize the act, making it more readable and easier to understand. By removing dated, repetitive and unnecessary language and clauses, the BCA will better reflect modern business practices in a digital world.
Proposed amendments would:
- Clarify directors’ responsibilities and protections.
- Expand opportunities for directors and officers by permitting corporations to allow corporate opportunity waivers in a company’s Articles of Incorporation or Unanimous Shareholder Agreement.
- If passed, this will put Alberta on the leading edge of modernizing corporate legislation in the country.
- Provide a longer time frame (10 years) for dissolved corporations to get back into business and remove the current time frame (five years) for non-profit companies, societies and cooperatives.
- Reduce administrative burdens around shareholder approvals by moving from a requirement of unanimity to a threshold of two-thirds approval in two specific situations:
- waiving the requirement of audited financial statements of privately held non-distributing corporations
- passing a written resolution instead of holding a shareholder meeting
- Align with other Canadian provinces and with the federal government.