The ''Canada Business Corporations Act'' (CBCA; french: Loi canadienne sur les sociétés par actions) is an act of the
Parliament of Canada
The Parliament of Canada (french: Parlement du Canada) is the federal legislature of Canada, seated at Parliament Hill in Ottawa, and is composed of three parts: the King, the Senate, and the House of Commons. By constitutional convention, ...
regulating
Canadian business corporations. Corporations in Canada may be incorporated federally, under the CBCA, or provincially under a similar provincial law.
Background
The act was legislated based on a report by a
task force organized in 1967 to provide the first comprehensive review of federal corporate law since 1934. It received
royal assent
Royal assent is the method by which a monarch formally approves an act of the legislature, either directly or through an official acting on the monarch's behalf. In some jurisdictions, royal assent is equivalent to promulgation, while in oth ...
on 24 March 1975, and came into force on 15 December 1975.
It provides the basic corporate governance framework for many small and medium-sized Canadian enterprises as well as many of the largest corporations operating in Canada. Nearly 235,000 companies are incorporated under the act, including over 700 distributing or publicly held corporations. CBCA corporations make up approximately 50 percent of Canada's largest publicly traded business corporations.
As of June 25, 2019, the act was amended to require information about the diversity of directors and members of “senior management” be provided to shareholders. Diversity information and the rank of senior management captured by the new reporting requirements will apply to all distributing corporations.
See also
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Canadian company law
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List of Acts of Parliament of Canada
Further reading
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References
External links
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Canadian federal legislation
Canadian corporate law
1975 in Canadian law
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