Proposed changes to corporate legislation aim to attract new businesses to New Brunswick24 November 2022
FREDERICTON (GNB) – Amendments to the Business Corporations Act were introduced today, aiming to modernize and align New Brunswick’s legislation governing corporations with that of other Canadian jurisdictions.
“I am proud of the work of our organization and their commitment to helping create an efficient and competitive environment for businesses in our province,” said Service New Brunswick Minister Jill Green. “These changes will make doing business in New Brunswick easier and more efficient, with clearer rules and less regulatory burden for businesses.”
The amendments reflect feedback received during consultations with more than 50 public and private sector organizations and associations, in addition to individuals from the province’s business community.
“These amendments reflect some of the most current thinking, so far as corporate legislation is concerned, and are in keeping with New Brunswick’s long-standing position of being at the forefront of modern corporate law,” said Paul Smith, partner at Stewart McKelvey.
Green said the amendments, once implemented, would:
- Allow corporations to take advantage of newer, more efficient technologies.
- Harmonize New Brunswick’s corporate legislation with similar laws in other provinces and territories.
- Reduce the regulatory burden on businesses.
- Provide an efficient and globally competitive corporate environment.
- Ensure the province’s corporate and securities laws complement and reflect modern business practices.
“The proposed legislative amendments are projected to reduce regulatory burden by over $17 million,” said Green. “Our ongoing work to review and modernize the province’s corporate legislation supports our focus on increasing transparency and accountability of corporations, and reducing the possibility of illicit financial activities, such as money laundering, fraud and tax evasion.”
Other amendments to the act were implemented in June, requiring corporations to maintain a registry of individuals who have significant control in their companies and, upon request, make this registry available to law enforcement, taxation authorities and other authorities.
Amendments to the legislation governing limited liability partnerships, to redefine liability insurance requirements, took effect in April.
A full list of proposed changes is available online.