Effective July 5, 2021 corporations governed by Ontario’s Business Corporations Act (OBCA) are no longer required to have any “resident Canadian” directors.
As noted in our October 2020 Blakes Bulletin: Ontario Proposes Changes to Business Corporations Act, the Government of Ontario introduced legislation to make certain amendments to the OBCA to eliminate the director residency requirement and, in the case of privately-held OBCA corporations, introduce more flexible rules regarding the approval of written shareholder resolutions. The relevant provisions of the Better for People, Smarter for Business Act, 2020 giving effect to these amendments will come into force on July 5, 2021.
These changes will enhance the attractiveness of Ontario as a jurisdiction for business formation. Ontario follows Alberta in eliminating director residency requirements in recent months, as noted in our March 2021 Blakes Bulletin: Restoring the Alberta Advantage: Significant Amendments to the Alberta Business Corporations Act Now in Effect.
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