Potential Permanent Changes to Enable Digital and Virtual Processes under the Ministry of Government and Consumer Services Business Law and Condominium Statutes
Bill or Act:
Corporations Act, Business Corporations Act, Personal Property Security Act, Limited Partnerships Act, Partnerships Act, Co-operative Corporations Act, Condominium Act, 1998.
Summary of Proposal:
On May 12, 2020, the Legislature passed the COVID-19 Response and Reforms to Modernize Ontario Act, 2020 which, among other things, included temporary legislative amendments to the Corporations Act (CA), the Business Corporations Act (OBCA), the Co-operative Corporations Act (CCA), and the Condominium Act, 1998 (Condo Act) to allow for virtual meetings and the deferral of annual meetings in some circumstances in response to the COVID-19 pandemic. The application of the temporary legislative amendments allowing for virtual meetings can be extended by regulation.
On October 1, 2020, new regulations made under the CA, OBCA, CCA and Condo Act came into force extending the application of the temporary legislative amendments permitting corporations to call and hold meetings through electronic and telephonic means, as applicable, notwithstanding certain requirements, until May 31, 2021, subject to further extension.
The Ministry of Government and Consumer Services (the Ministry) is now seeking public and stakeholder input on whether potential permanent changes or further temporary changes should be proposed to the various business law statutes and to the Condo Act, in relation to virtual processes to help corporations adapt to new ways of doing business that are more digital/virtual allowing for broader participation.
The Ministry has developed a Feedback Form for each impacted sector that consists of targeted questions intended to solicit feedback on potential permanent amendments under various corporate and condo statutes regarding (1) virtual meetings, (2) electronic delivery of notices and documents, and (3) storage/examination of records through electronic means. Public input can be provided on the attached Feedback Forms. There has been a feedback form developed for each impacted sector including: A. Business Corporations, PPSA, LPA, PA Feedback Form, B. Corporations and Not-for-profit Corporations Feedback Form, C. Co-operative Corporations Feedback Form, D. Condominium Corporations Feedback Form.
This posting will close on February 8, 2021.
Analysis of Regulatory Impact:
January 7, 2021
Comments Due Date:
February 8, 2021
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