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 10^th to put such a register in place.
Continue reading “Reminder: Ontario corporations must keep track of the land in Ontario in which they have an “Ownership Interest””