Canadian Corporate Law Glossary

Plain-language definitions of key terms used in Canadian corporate minute books, compliance filings, and business law — sourced from the CBCA, OBCA, and related statutes.

Jump to

Minute Book

CBCA s. 20 · OBCA s. 140

The official legal record of a Canadian corporation's history and governance. Required by federal law (CBCA) and all provincial business corporations acts (OBCA, BCBCA, ABCA, etc.).

A complete minute book includes: articles of incorporation, by-laws, organizational resolutions of directors and shareholders, share certificates, register of shareholders (securities register), register of directors, register of officers, register of individuals with significant control (ISC register), and annual resolutions for each fiscal year.

Failing to maintain a minute book can result in fines of up to $5,000 per officer or director under the CBCA, and up to $200,000 for ISC-related non-compliance under the OBCA. Courts can also pierce the corporate veil if a corporation's records are so poor as to suggest it was not operated as a separate legal entity.

ISC Register (Individuals with Significant Control)

CBCA s. 21.1 (since 2019) · OBCA s. 140.2 (since Jan 1, 2023)

A legally required record listing every individual who directly or indirectly controls 25% or more of a corporation's voting shares or total outstanding shares. "Indirect control" means looking through corporate shareholders to the ultimate human owners — a holding company does not satisfy the requirement.

The ISC register must include: each individual's legal name, date of birth, last known address, date they became (and ceased to be) an individual with significant control, and a description of the nature of their control.

Must be kept at the registered office, updated within 15 days of any change, and reviewed and confirmed each year alongside the annual resolutions. Penalty for non-compliance: up to $200,000 for the corporation and up to $200,000 or 6 months imprisonment for individuals who knowingly fail to provide required information (OBCA).

Organizational Resolutions

CBCA s. 104 · OBCA s. 116

The first formal decisions made by the directors of a newly incorporated corporation. They establish the corporation's operational foundation and must be completed promptly after incorporation.

Organizational resolutions of directors typically cover: adoption of corporate by-laws, issuance of shares to the founding shareholders (at the price stated in the subscription), appointment of officers (President, Secretary, etc.), designation of banking institution, setting the fiscal year-end, and authorization of the registered office.

Organizational resolutions of shareholders confirm the directors elected at incorporation, ratify the by-laws, and (optionally) appoint the corporation's auditor or waive the audit requirement. Together, these documents are the foundation of the minute book.

Annual Resolutions

CBCA s. 133–142 · OBCA s. 94–103

Documents signed each year by the directors and shareholders of a Canadian corporation, ratifying the previous fiscal year's financial statements and confirming the corporation's directors and officers remain in their roles. Required under the CBCA and provincial equivalents as an alternative to holding a formal annual general meeting (AGM).

Annual resolutions must be signed within 6 months of the fiscal year-end for most Canadian jurisdictions. For a December 31 fiscal year-end, that means signed by June 30. Missing a year creates a gap that must be corrected retroactively.

Annual resolutions are distinct from the annual return (a government filing). Both are required — they serve different purposes.

CBCA — Canada Business Corporations Act

R.S.C., 1985, c. C-44 · Administered by Corporations Canada (ISED)

The federal statute governing corporations incorporated under federal law in Canada. A CBCA corporation has the same legal name across all Canadian provinces and territories, offering broader name protection than a provincial incorporation but requiring extra-provincial registration in each province where business is carried on.

Key CBCA compliance requirements: maintain corporate records at the registered office (s. 20), maintain an ISC register (s. 21.1, since June 13, 2019), hold or pass annual resolutions within 6 months of fiscal year-end, file an annual return with Corporations Canada within 60 days of the incorporation anniversary date (since January 2024, ISC information is submitted as part of this annual return).

Director residency requirement: repealed effective January 15, 2023. CBCA corporations no longer need any Canadian-resident directors.

OBCA — Ontario Business Corporations Act

R.S.O. 1990, c. B.16 · Administered by the Ontario Business Registry

The Ontario provincial statute governing corporations incorporated in Ontario. OBCA corporations are recognized by law throughout Ontario but must register extra-provincially to carry on business in other provinces.

Key OBCA compliance requirements: maintain corporate records (s. 140), maintain an ISC register (s. 140.2, since January 1, 2023), sign annual resolutions within 6 months of fiscal year-end, and file annual returns through the Ontario Business Registry. OBCA requires at least 25% of directors to be Canadian residents (or at least one director if there are fewer than four directors).

OBCA is a common choice for small businesses operating primarily in Ontario, professional corporations (dental, medical, legal, accounting), and holding companies used in Ontario-based corporate structures.

Share Certificate

CBCA s. 48 · OBCA s. 54

A document issued by a corporation evidencing a shareholder's ownership of a specified number of shares of a particular class. Every shareholder is entitled to a certificate for their shares unless the corporation has authorized uncertificated shares by board resolution.

A valid Canadian share certificate must show: the corporation's name and jurisdiction, a unique certificate number, the shareholder's legal name, the number and class of shares, any restrictions on transfer, signatures of two authorized officers, and the date of issuance.

Certificate numbers are permanent — they must never be reused, even after a certificate is cancelled. The cancelled certificate and its replacement together form the transfer audit trail in the securities register.

Register of Shareholders (Securities Register)

CBCA s. 50 · OBCA s. 50

A required corporate record listing every shareholder, the class and number of shares they hold, the date shares were issued or transferred, and the corresponding certificate numbers. The register is the authoritative record of ownership — not the certificates themselves.

Must be maintained at the registered office and updated within 15 days of any share issuance, transfer, or cancellation. In due diligence for a sale or financing, lawyers will compare the register against the certificates and the corporate resolutions authorizing each issuance to verify the ownership chain is complete and unbroken.

Corporate By-laws

CBCA s. 103 · OBCA s. 116

Internal rules governing how a Canadian corporation operates day-to-day. By-laws typically cover: calling and conducting shareholder meetings, director elections and terms, quorum requirements, officer appointments and duties, banking arrangements, execution of contracts, dividends, and the corporation's financial year.

By-Law No. 1 is the foundational by-law adopted at incorporation by the directors and confirmed by the shareholders. It must be included in the minute book. By-laws can be amended by the directors at any time, subject to shareholder confirmation at or before the next annual meeting.

Registered Office

CBCA s. 19 · OBCA s. 14

The official address of a corporation as recorded with its home registry. All legal notices, government correspondence, and service of process must be sent to the registered office. It must be a physical address in the jurisdiction of incorporation — a P.O. box is not permitted.

The minute book must be kept at the registered office (or another location in the jurisdiction authorized by a resolution of directors — for CBCA corporations, the Articles of Incorporation or a director resolution can designate an alternate address in Canada). Changes to the registered office must be filed with the registry promptly.

Annual Return

CBCA s. 263 · Ontario: Business Names Act / OBR

A government filing made each year confirming the corporation is still active and updating basic information (directors, registered office, share structure summary) with its home registry. Completely separate from — and in addition to — internal annual resolutions.

Federal (CBCA) corporations file with Corporations Canada within 60 days of their incorporation anniversary date. Ontario corporations file through the Ontario Business Registry annually. Missing filings can result in the corporation being dissolved or struck from the registry.

Since January 2024, federal (CBCA) corporations must submit ISC (individuals with significant control) information as part of their annual return — it is filed electronically and published in a public register maintained by Corporations Canada.

Uncertificated Shares

CBCA s. 48(2) · OBCA s. 54(2)

Shares issued by a corporation without physical paper certificates. Permitted under the CBCA and most provincial equivalents when a board resolution authorizes uncertificated issuance. Shareholders receive a written notice of their holdings (a "confirmation") in place of a paper certificate.

The register of shareholders remains the authoritative record of ownership whether shares are certificated or not. Uncertificated shares are increasingly common for small private corporations seeking to simplify share administration. Any shareholder may request a paper certificate at any time, regardless of the corporation's uncertificated authorization.

Professional Corporation (PC)

Ontario: OBCA s. 3.2 + Regulated Health Professions Act + professional college regulations

A corporation formed by a licensed professional (dentist, physician, lawyer, accountant, architect, etc.) to carry on a regulated profession. In Ontario, professional corporations are governed by the OBCA and regulated by the applicable professional college (RCDSO, CPSO, LSO, CPA Ontario, etc.).

Key restriction: voting shares may only be held by a licensed member of the regulated profession. Certain non-voting shares may be held by permitted family members (spouse, children, parents — definitions vary by profession) for income-splitting purposes. This restriction must appear in the articles of incorporation and be reflected in the share certificates.

A professional corporation must hold a Certificate of Authorization from its regulating college, which should be kept in the minute book. PCs carry the same minute book obligations as any other corporation — organizational resolutions, annual resolutions, ISC register — with the added complexity of the professional share structure.

Generate your first corporate resolution free

No credit card. Full minute books from $99 CAD/yr per corporation.

Try MinuteKeep Free →