Ontario’s Not-for-Profit Business Corporations Act (ONCA), which received royal assent back in 2010, is finally set to come into force on October 19th. Businesses that will be governed by this new legislation will have a three-year grace period, until October 19, 2024, to bring themselves into compliance with the changes under the Act. Below, we […]
Category Archives: Director’s & Officer’s Liability
Cannabis Company Facing Class Action & Fraud Charges
One of the benefits of incorporating a business is the corporation becomes an entity unto itself, meaning the officers and directors are generally shielded from personal liability should something go wrong. However, this isn’t always the case, depending on the specific issue. As demonstrated by the ongoing trials and tribulations faced by an Ontario-based cannabis […]
Changes Coming to Business Corporations Act in July
There are changes taking effect to Ontario’s Business Corporations Act on July 5th, aimed at eliminating certain requirements in an attempt to make it easier for organizations in Ontario to do business. The changes come as part of Bill 213, the Better for People, Smarter for Business Act, which received royal assent near the end […]
Corporate Directors & Personal Liability for Unpaid Wages
A recent decision of the Ontario Court of Appeal in Abbasbayli v. Fiera Foods Company provides insight into the statutory claims that may be brought against corporate directors for unpaid wages and vacation pay in the context of wrongful dismissal. Terminated Employee Makes Claim for Unpaid Wages Against Corporation and Directors Personally The Plaintiff, Mr. […]
One Director’s Defense to Personal Liability
When you commit to becoming a Director of a company in Ontario, you should know the ways in which various statutes can create personal liability for you following certain omissions or breaches of the company’s obligations. These statutes include the Canada Business Corporations Act (CBCA) and the Business Corporations Act in Ontario. The federal Income […]