Regulation - LGIC
Regulatory Registry Consultation Regarding Regulatory Amendments under the Business Corporations Act (Reg 62 and O. Reg 289) and the Corporations Act (Reg 181)
Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Business Corporations Act, Corporations Act
Summary of Decision:
Approved
Further Information:
Forfeited Corporate Property Act, 2015
Condominium Management Services Act, 2015
ONTARIO REGULATION 371/16 made under the BUSINESS CORPORATIONS ACT
ONTARIO REGULATION 372/16 made under the BUSINESS CORPORATIONS ACT
ONTARIO REGULATION 373/16 made under the CORPORATIONS ACT
ONTARIO REGULATION 374/16 made under the EXTRA-PROVINCIAL CORPORATIONS ACT
Proposal Number:
16-MGCS014
Posting Date:
August 12, 2016
Summary of Proposal:
ServiceOntario is proposing two regulatory amendments in support of the Forfeited Corporate Property Act, 2015 (FCPA) which will come into force on December 10, 2016.
• Where there is an application for articles of revival to revive an administratively dissolved corporation under the Business Corporations Act or an application for an order to revive an administratively dissolved corporation under the Corporations Act, the proposed regulatory changes would require the consent of one or more of the following parties:
o the Public Guardian and Trustee
o the Minister responsible for the Forfeited Corporate Properties Act, 2015
o the Minister responsible for the Environmental Protection Act,
o the Minister responsible for the Mining Act
• The consent of the above parties would only be required where that party notifies MGCS that their consent is required.
• These proposed amendments would be to O/Reg 289 under the Business Corporations Act and Regulation 181 under the Corporations Act.
Background:
• Administrative dissolution of a corporation may occur when a corporation does not comply with certain statutes such as the Corporations Tax Act (by not filing Tax Returns or paying taxes) or the Corporations Information Act (by not making required filings).
• Ontario law provides that when a corporation, incorporated under on Ontario statute, is dissolved any property owned by the corporation that has not been disposed of at the time of dissolution forfeits to the government of Ontario.
• The FCPA gives the government of Ontario powers in respect of forfeited corporate property.
• The proposed amendments would, for example, allow for these ministries and parties to consider whether costs incurred on the forfeited property should be paid before the revival is permitted.
ServiceOntario is proposing one additional regulatory amendment in anticipation of the proclamation of the Condominium Management Services Act, 2015.
o The proposed regulatory amendment under the Business Corporations Act ('BCA') would restrict the use of the word "condominium" in a corporate name only where its use suggests the corporation is a condominium corporation under the Condominium Act, 1998.
o The current regulation under the BCA does not allow the word 'Condominium' (or any abbreviation or derivation) to be part of a corporate name in any circumstance. The proposed amendment would make it less restrictive for business corporations to use the word 'condominium' in a corporate name.
o This proposed amendment would be to paragraph 6 of section 15 of Regulation 62 under the Business Corporations Act (BCA).
All interested parties are encouraged to provide feedback on the proposed regulations by September 27, 2016.
Feedback can be provided in two ways:
1) By using the comments field which appears when the "Comment on this proposal via e-mail" field is accessed below.
2) By regular mail:
Glenn Kent
Regulatory Services Branch, ServiceOntario
Ministry of Government and Consumer Services
393 University Avenue, Suite 200,
Toronto ON M5G 2M2
• Where there is an application for articles of revival to revive an administratively dissolved corporation under the Business Corporations Act or an application for an order to revive an administratively dissolved corporation under the Corporations Act, the proposed regulatory changes would require the consent of one or more of the following parties:
o the Public Guardian and Trustee
o the Minister responsible for the Forfeited Corporate Properties Act, 2015
o the Minister responsible for the Environmental Protection Act,
o the Minister responsible for the Mining Act
• The consent of the above parties would only be required where that party notifies MGCS that their consent is required.
• These proposed amendments would be to O/Reg 289 under the Business Corporations Act and Regulation 181 under the Corporations Act.
Background:
• Administrative dissolution of a corporation may occur when a corporation does not comply with certain statutes such as the Corporations Tax Act (by not filing Tax Returns or paying taxes) or the Corporations Information Act (by not making required filings).
• Ontario law provides that when a corporation, incorporated under on Ontario statute, is dissolved any property owned by the corporation that has not been disposed of at the time of dissolution forfeits to the government of Ontario.
• The FCPA gives the government of Ontario powers in respect of forfeited corporate property.
• The proposed amendments would, for example, allow for these ministries and parties to consider whether costs incurred on the forfeited property should be paid before the revival is permitted.
ServiceOntario is proposing one additional regulatory amendment in anticipation of the proclamation of the Condominium Management Services Act, 2015.
o The proposed regulatory amendment under the Business Corporations Act ('BCA') would restrict the use of the word "condominium" in a corporate name only where its use suggests the corporation is a condominium corporation under the Condominium Act, 1998.
o The current regulation under the BCA does not allow the word 'Condominium' (or any abbreviation or derivation) to be part of a corporate name in any circumstance. The proposed amendment would make it less restrictive for business corporations to use the word 'condominium' in a corporate name.
o This proposed amendment would be to paragraph 6 of section 15 of Regulation 62 under the Business Corporations Act (BCA).
All interested parties are encouraged to provide feedback on the proposed regulations by September 27, 2016.
Feedback can be provided in two ways:
1) By using the comments field which appears when the "Comment on this proposal via e-mail" field is accessed below.
2) By regular mail:
Glenn Kent
Regulatory Services Branch, ServiceOntario
Ministry of Government and Consumer Services
393 University Avenue, Suite 200,
Toronto ON M5G 2M2
Contact Address:
Glenn Kent
Senior Policy Advisor, Regulatory Services Branch, ServiceOntario
Ministry of Government and Consumer Services
393 University Avenue, Suite 200,
Toronto ON M5G 2M2
Senior Policy Advisor, Regulatory Services Branch, ServiceOntario
Ministry of Government and Consumer Services
393 University Avenue, Suite 200,
Toronto ON M5G 2M2
Effective Date:
December 10, 2016
Decision:
Approved