In an international endeavour to enhance corporate transparency and fight against serious financial crime, private firms established under the British Columbia Business Corporations Act (BCBCA) have been mandated to prepare and maintain a Transparency Register since October 1, 2020. This significant regulatory development in British Columbia directly targets illicit activities such as tax evasion, money laundering, and corruption, blocking the opaqueness used by malevolent actors to hide their illicit gains.
This information is brought forth by Stikeman Elliott LLP. Displayed on this registry should be individuals who hold direct or indirect control of 25% or more of the company’s shares or votes. Specific personal details about these influential individuals must be included as well.
- Rules and Implementation: The essential requirement for the register came to force on October 1, 2020. As per this provision, a company incorporated under the BCBCA will need to document specific information concerning the company’s significant individuals and business in a transparency register.
- Who Should Be Listed: The term ‘significant individuals’ as defined in the Act refers to people who either directly or indirectly own 25% or more of the company’s shares or votes. But it also covers individuals who have the right or ability, directly or indirectly, to select the majority of the directors of the company.
- Information Required: The register must encompass the full name, date of birth, citizenship, last known address, and a description of how the person is a significant individual. These details should be updated at least once annually or when the company becomes aware of a change.
Private companies incorporated under the British Columbia Business Corporations Act, particularly those with complex ownership and control structures, must adhere to these rules and maintain up-to-date information on their Transparency Register. Failure to comply can result in significant penalties, including fines and potential individual liability.