Torys has written a good, short memo on new regulations that will require corporations under the Canada Business Corporations Act to create a new shareholder register that “pertain[s] to all individual shareholders, registered or beneficial, who have significant control, direct or indirect, over the corporation.”
It’s tempting to write “All the more reason to incorporate under the Ontario Business Corporations Act“, but the memo points out that “provincial and territorial finance ministers have agreed to follow the federal lead in this area, although the timing of them doing so is uncertain”. It’ll be interesting to see what “Ford Nation” does with this initiative.
It appears that whether or not there are nominee owners among the direct and indirect shareholders of the Corporation, the company register is supposed to show the actual individuals (not another corporation, and not a trust or other entity) who ultimately own or control, directly or indirectly, at least 25% of the Corporation in votes or value.
He asks about the implications of this new rule for the valuation of interests in trusts, especially discretionary trusts.