As per the Canada Business Corporations Act (CBCA), the Companies from Canada will require to prepare and maintain a register of Individuals having Significant Control (ISC) of the company. The maintenance of the register is in addition to the current registers as maintained for directors and shareholders.
The corporation needs to take reasonable steps to identify individuals with significant control at least once during each financial year to ensure that, the register is updated with the up to date information. In case of Change in Information, the register needs to be updated with such change within 15 days of Corporation becoming aware of it.
The individuals with significant control (ISC) refers to those individuals who have 25% or more of the voting rights or hold 25 % or more of the fair market value (FMV) of shares. Such interest or rights can be as registered shareholders, beneficial owners, direct or indirect* or even when held jointly with other individuals (provided such individuals are acting jointly).
* Indirect control can be as shareholder (s) of parent company or companies.
A register of Individuals having Significant Control (ISC) register shall contain following details:
In case of any offence such as failure to prepare and maintain register, recording of false or misleading information, provision of false and misleading information etc., a director, officer, or shareholder will be for fine up to CAD 200,000 or imprisonment for a term of up to six months, or both.
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