Commercial Law

Reminder: Ontario corporations must keep track of the land in Ontario in which they have an “Ownership Interest”

November 27th, 2018 by Ted Hyland

Deadline – December 10, 2018

In 2015, the Ontario Legislature enacted the Forfeited Corporate Property Act, 2015, which deals with what happens to property, including land and interests in land, which corporations own at the moment that they cease to exist.

Ordinarily, if a corporation owns land (or any property) when it is dissolved, the land “escheats” (is forfeited) to the Crown.  Sometimes – often – the corporation is dissolved because of its failure to make its annual filings, and the dissolution occurs unbeknownst to the owners / directors of the corporation.

As part of imposing some rationalization on keeping track of the land in Ontario that Ontario corporations own, the Forfeited Corporate Property Act, 2015 amended the Business Corporations Act (Ontario) and the Corporations Act (Ontario) to require corporations governed by those statutes to complete and maintain a register of all of their “ownership interests” in land located in Ontario.  (When it comes into effect, the Not‑for‑Profit Corporations Act will also impose this rule on the corporations that it governs; co‑operative corporations, on the other hand, have been spared the obligation to have such a register.) We previously wrote about this in March of 2017.

If your organization has been in existence since before December 10, 2016 and is either a business corporation incorporated under the Business Corporations Act (Ontario) or a non‑profit corporation incorporated under the Corporations Act (Ontario), then it has until this coming December 10th to put such a register in place.
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Social finance: Challenges for its legal regulation

June 28th, 2018 by Ted Hyland

This article was first published on rabble.ca.

Last month, the Senate Standing Committee on Social Affairs, Science and Technology issued a report entitled The Federal Role in a Social Finance Fund. The Committee’s recommendations included the federal government creating and contributing to a national social finance fund. This recommendation, among others from the Committee, aligns with, for example, the social enterprise strategy of the Ontario government.

For all of the optimism percolating through the Senate report and Ontario’s strategy there is the challenge of how to reconcile two dynamics that historically have been opposed: the private interest for profit and the common interest for public benefit. Social finance is about harnessing capital and the forces of the market to solve social problems. It’s about commercializing social, environmental and cultural problems that traditionally were addressed by government as part of an overall goal of wealth redistribution and creation and protection of public goods. Social finance represents a shift: addressing these problems is an opportunity for wealth creation, as well as doing good. Read the rest of this entry

Think your waiver has you covered? It might not.

May 18th, 2018 by Elliot Fonarev

Chances are your organization has dealt with waivers if your services have the potential to create injury or liability to your clients or customers – for example, if you operate sports facilities or provide access to a physical space with potential hazards. If so, a recent decision of the Ontario Superior Court of Justice on the topic of waivers may interest you. It highlights that documents that release liability should be drafted very specifically to make it clear which legal rights are being waived.

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Federal Non Profit Corporations: Deadline of July 31, 2017 to transition from Canada Corporations Act to Canada Not-for-Profit Corporations Act

March 21st, 2017 by Ted Hyland

If you’re involved in a non‑profit organization that was incorporated under the Canada Corporations Act and your organization has not completed the transition to the Canada Not‑for‑profit Corporations Act, then you have until July 31, 2017 to do so. Corporations Canada has issued a notice that if the transition is not completed by July 31st, the corporation will be dissolved. In other words, the corporation will cease to exist, legally, and if it’s a registered charity, it could lose its charitable registration.

To obtain more details about what’s involved in completing the transition, you can check out the “Transition Guide” on Corporations Canada’s website.

If you have any questions about the transition process, you can also contact one of our lawyers.

Corporations that Own an Interest in Land: New Record Keeping Requirements

March 9th, 2017 by Ted Hyland

In 2015, the Ontario legislature passed legislation called the Forfeited Corporate Property Act, 2015 (the FCPA). The FCPA came into effect on December 10, 2016.

One of the things that the FCPA does is to amend the Corporations Act (Ontario), the Business Corporations Act (Ontario), and the Not‑for‑Profit Corporations Act, 2010 (Ontario) to require corporations that are subject to these statutes to keep a register at their registered office of their ownership interests in land located in Ontario.

Given that the amendments were enacted in the FCPA, it seems that the provincial government intends for this to be a convenient mechanism to enable it to locate land that reverts to the Crown if a corporation is dissolved while still owning land.

What’s the new requirement?

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The evolving world of social finance in Ontario

December 7th, 2012 by Brian Iler and Laura Bowman

Social enterprises can find it difficult to raise capital from community‑minded investors.  Even in the non “social enterprise” sector, most capital for small and startup enterprises is still raised from friends and family rather than banks, wealthy investors or other more traditional sources.

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