If you are a business owner and your company has an ‘ownership interest’ in land in Ontario, it is important that you are aware of the new requirements that affect your business. Recent changes now require companies operating under the Ontario Business Corporations Act (“OBCA”) to maintain a register of their ownership interests in land located in Ontario.
This record-keeping requirement is mandatory, regardless of the size of the corporation. The information regarding corporate land ownership is to be included alongside all other corporate records, in what is commonly referred to as the corporate minute book.
The register must:
- Identify all property in Ontario in which the corporation has an ownership or interest; and
- Identify the date on which the corporation acquired the property and, if applicable, the date on which the property may have been disposed.
The register must also contain copies of any deeds, transfers, or similar real estate documents that include the following information:
- The municipal address of each property listed on the register;
- The registry or land titles division and the PIN of each property listed on the register;
- The legal description of each property listed on the register; and
- The assessment roll number of each property listed on the register, if applicable.
When is the deadline?
While the OBCA amendments came into force on December 10, 2016, corporations existing before this date have until December 10, 2018 to comply. Corporations incorporated on or after December 10, 2016 are required comply immediately and maintain a land register as of their date of incorporation without the benefit of this two-year grace period. Non-complying corporations may be exposed to potentially significant fines.
Ensure enough time for preparation!
It is important to start preparing everything now to ensure that your corporation will meet the requirements in time for the December 10, 2018 deadline.
Though this may sound like a daunting task, Buzaker Law Firm Professional Corporation can assist you with ensuring your corporate records are up to date and comply with these requirements. Please contact our office for further details regarding this service.