Corporate law policy involves the ongoing review of Canada's federal business framework statutes governing the corporate sector and the development of legislative policy recommendations. The links below provide additional information on Innovation, Science and Economic Development Canada's activities around corporate law policy.
The Canada Business Corporations Act (CBCA) provides the corporate governance framework for many small and medium-sized Canadian enterprises, as well as many of the largest corporations operating in Canada. The statute sets out clear and transparent rules pertaining to the creation of businesses incorporated at the federal level; the rights and responsibilities of management, the board, and shareholders; and financial accountability. The modern and comprehensive corporate governance standards set out in the statute ensure that federal business corporations have the tools to deal with the emerging issues facing the capital markets of today and the future.
The Canada Not-for-profit Corporations Act (NFP Act) provides federal not-for-profit corporations with rules that are modern, flexible and better suited to the needs of today's not-for-profit sector. These rules support sound governance, and clarify the roles and responsibilities of directors, members, officers and other interested parties. Federal not-for-profits corporations operate without share capital. The NFP Act replaces the Canada Corporations Act, Part II, once federal not-for-profit corporations have transitioned to the NFP Act.
The Canada Cooperatives Act provides a legislative framework for the incorporation of non-financial cooperatives at the federal level. Modeled on the CBCA, the Canada Cooperatives Act gives federally incorporated cooperatives tools to help them prosper and achieve their growth potential for the benefit of their members, workers and consumers across Canada. It also sets the framework for them to access financial markets through the issuance of shares.
For further information, see:
- the website of the Competition Bureau
- the website of Corporations Canada
- Primer for Directors of Not-for-Profit Corporations, Rights, Duties and Practices
- Clause-by-Clause for the 2001 amendments to the CBCA: Bill S-11
Corporate law policy is the responsibility of the Investment, Insolvency, Competition and Corporate Policy Directorate, which is part of the Marketplace Framework Policy Branch.