Ontario Corporations No Longer Need Canadian Resident Directors
As of July 5, 2021, Ontario will repeal the existing Canadian residency requirement of at least 25% of a corporation’s directors to be resident in Canada. This change was included in the amendments to the Business Corporations Act (Ontario) (OBCA) in Bill 213, the Better for People, Smarter for Business Act, 2020.
The amendment not only eliminates the Canadian-resident director requirement for newly incorporated corporations, but also for existing Ontario corporations. This will allow for revisions to the composition of a board of directors. However, companies incorporated federally remain subject to the at least 25% Canadian residency requirement for directors.
In this article, written by RSM Canada, they explore in detail the Bill 213 amendments and the advantages of the changes.