Canada: Shareholders

Private corporations governed by the Canada Business Corporations Act (the “CBCA”) should ensure that their register of individuals with significant control (an “ISC Register”) is complete, accurate and up to date. Corporations Canada has begun issuing official inquiries to certain CBCA corporations in connection with their ISC Register filings, particularly where a corporation has reported that it has no individuals with significant control (“ISCs”).

Canadian business owners increasingly ask whether Bitcoin, Ethereum, stablecoins and other crypto-assets should be purchased personally or through a corporation. The question commonly arises where an operating company has accumulated retained earnings and the owner-manager does not need to withdraw all of those funds for personal spending.

Les sociétés fermées régies par la Loi canadienne sur les sociétés par actions (LCSA) devraient s’assurer que les renseignements contenus dans leur registre des particuliers ayant un contrôle important (PCI) sont complets, exacts et à jour. Corporations Canada a commencé à envoyer des avis d’enquête officielle à certaines sociétés régies par la LCSA concernant le dépôt de leur registre des PCI, en particulier à celles ayant déclaré ne pas avoir de tels particuliers.

For too long, Canadian tax law penalized business owners who wanted to keep their life’s work in the family. A sale to a stranger entitled the vendor to the lifetime capital gains exemption (LCGE) — currently $1,302,938 for 2026, indexed annually — sheltering over a million dollars of gain from tax.

The Tax on Split Income (TOSI) rules remain among the most complex and misunderstood areas of Canadian private corporation tax planning.

When a business is sold, whether through a share sale or an asset sale, the purchaser almost invariably demands restrictive covenants—such as a non-competition or non-solicitation agreement—from the selling shareholders or key principals.

When a business is sold, whether through a share sale or an asset sale, the purchaser almost invariably demands restrictive covenants—such as a non-competition or non-solicitation agreement—from the selling shareholders or key principals.

In Malek v The King (2026 TCC 84), the Tax Court of Canada examined the Canada Revenue Agency’s (CRA) use of the net worth assessment method against a trucking corporation and its shareholder-managers.

A Unanimous Shareholder Agreement (USA) is a formal contract among private corporation shareholders that establishes governance rules, ownership rights, and dispute resolution mechanisms beyond default legislative provisions. This comprehensive guide explores how a well-drafted USA prevents costly shareholder disputes, provides tailored exit strategies, protects ownership interests, and creates customized corporate structures that reflect the unique needs of your business.