It appears 2024 will include an unwelcome surprise for many business owners in Canada – public disclosure of their ownership interests in corporations. If you own federally-incorporated corporations, the agenda this fall should include a review to prepare for compliance. Canada Business Corporations Act Since 2017, Canada and the provinces, including Newfoundland and Labrador, have […]
Any corporate or commercial transaction involving a Newfoundland and Labrador corporation must include a consideration of the prohibited financial assistance provisions in the Corporations Act (Newfoundland and Labrador) and how to address any issues that arise. Failure to do so could result in the enforceability of a loan or guarantee, personal liability for corporate directors and professional negligence claims. This newsletter outlines the concept of prohibited financial assistance under NL corporate law and the most common ways the prohibition is overcome or mitigated.