The Commons Industry committee approved a government proposal to make it mandatory for federally registered companies to disclose their ownership information. .According to Blacklock’s Reporter, this bill will not cover around 85% of Canadian companies, as they are registered at the provincial level..“This is a federal initiative that will only apply to a small percentage of companies in Canada given that most are incorporated under provincial laws,” testified RCMP Superintendent Denis Beaudoin. .“To avoid leaving vulnerabilities that can be exploited by illicit actors, beneficial ownership transparency must be addressed across Canada as a whole to be useful. Otherwise, criminals will simply use a province that doesn’t have a registry.”.Bill C-42 An Act to Amend the Canada Business Corporations Act proposes that federally registered companies provide the names and addresses of individuals who hold “significant control” over the company..This includes individuals who own at least 25% of the company's shares. The submission of this information would be made annually..“What our bill asks for is, who is the human, the natural person at the very end of the chain who is actually exercising control?” said Mark Schaan, senior assistant deputy Industry minister. .“If that person is exercising greater than 25% of control, that is whose name appears.”.Starting in 2025, the department of Industry website will publish the information..“One of the big challenges I think everyone around this table has recognized is the undeniable fact that most corporations in Canada are not registered with the federal government,” said Conservative MP Brad Vis (Mission-Matsqui, BC). .“When we break it down with significant thresholds, the number of companies that would be included in this is actually quite small.”.According to official estimates, of the 2,951,629 businesses nationwide, 458,790 are registered federally..“Incorporation is a shared jurisdiction in Canada and federal incorporation is less than 15% of all incorporations in Canada,” testified Justin Brown, senior director with the department of Finance. .“This bill would represent an enormous step by implementing a federal registry for corporations. However, there remain 85% of corporations that would not be covered.”.James Cohen, executive director of Transparency International Canada's advocacy group, said the bill was a first step..“The crooks are going to go where the weakest link is,” said Cohen. .“This is why this has to be a harmonized approach. It’s not just a federal approach.”.Parliament last June 23 passed an omnibus budget bill C-19 that allowed the Industry department to begin compiling data for public disclosure. Maximum penalties for scofflaws under C-42 were proposed at $200,000..“The $200,000 is a joke,” said New Democrat MP Brian Masse (Windsor West, ON). .“The $200,000 is just the cost of doing business, really.”.The Industry committee unanimously voted 11 to 0 in favour of Masse's proposal to impose a maximum penalty of $1 million and five years imprisonment..“I don’t think in North American society we take corporate crime very seriously,” said Masse. .“I really don’t. Sometimes you have these odd cases here and there, but there’s not enough of that. We are more concerned with petty stuff.”
The Commons Industry committee approved a government proposal to make it mandatory for federally registered companies to disclose their ownership information. .According to Blacklock’s Reporter, this bill will not cover around 85% of Canadian companies, as they are registered at the provincial level..“This is a federal initiative that will only apply to a small percentage of companies in Canada given that most are incorporated under provincial laws,” testified RCMP Superintendent Denis Beaudoin. .“To avoid leaving vulnerabilities that can be exploited by illicit actors, beneficial ownership transparency must be addressed across Canada as a whole to be useful. Otherwise, criminals will simply use a province that doesn’t have a registry.”.Bill C-42 An Act to Amend the Canada Business Corporations Act proposes that federally registered companies provide the names and addresses of individuals who hold “significant control” over the company..This includes individuals who own at least 25% of the company's shares. The submission of this information would be made annually..“What our bill asks for is, who is the human, the natural person at the very end of the chain who is actually exercising control?” said Mark Schaan, senior assistant deputy Industry minister. .“If that person is exercising greater than 25% of control, that is whose name appears.”.Starting in 2025, the department of Industry website will publish the information..“One of the big challenges I think everyone around this table has recognized is the undeniable fact that most corporations in Canada are not registered with the federal government,” said Conservative MP Brad Vis (Mission-Matsqui, BC). .“When we break it down with significant thresholds, the number of companies that would be included in this is actually quite small.”.According to official estimates, of the 2,951,629 businesses nationwide, 458,790 are registered federally..“Incorporation is a shared jurisdiction in Canada and federal incorporation is less than 15% of all incorporations in Canada,” testified Justin Brown, senior director with the department of Finance. .“This bill would represent an enormous step by implementing a federal registry for corporations. However, there remain 85% of corporations that would not be covered.”.James Cohen, executive director of Transparency International Canada's advocacy group, said the bill was a first step..“The crooks are going to go where the weakest link is,” said Cohen. .“This is why this has to be a harmonized approach. It’s not just a federal approach.”.Parliament last June 23 passed an omnibus budget bill C-19 that allowed the Industry department to begin compiling data for public disclosure. Maximum penalties for scofflaws under C-42 were proposed at $200,000..“The $200,000 is a joke,” said New Democrat MP Brian Masse (Windsor West, ON). .“The $200,000 is just the cost of doing business, really.”.The Industry committee unanimously voted 11 to 0 in favour of Masse's proposal to impose a maximum penalty of $1 million and five years imprisonment..“I don’t think in North American society we take corporate crime very seriously,” said Masse. .“I really don’t. Sometimes you have these odd cases here and there, but there’s not enough of that. We are more concerned with petty stuff.”
