Corporate Update
May 2022 Charity & NFP Law Update
Published on May 26 2022

By Theresa L.M. Man
   
 

Corporations Canada Announces Resumption of Administrative Dissolutions

In an announcement released on April 29, 2022, Corporations Canada stated that in spring 2022, it would be resuming administrative dissolutions of corporations that are in default of filing their annual returns for at least two years.

Federally incorporated corporations, including those under the Canada Not-for-profit Corporations Act, are required to file annual returns with Corporations Canada each year within the 60-day period following its incorporation anniversary date. This annual return is a separate return from the CRA’s return filing obligations, such as the T3010, Registered Charity Information Return for federal corporations that are registered charities. Where a corporation has failed to file its annual return, Corporations Canada may assume that it is no longer operating and may dissolve the corporation.

Corporations Canada had previously paused these administrative dissolutions in March 2020 as a means of easing regulatory requirements in response to challenges for corporations resulting from the COVID-19 pandemic. Once the program has been resumed, Corporations Canada has indicated that it will send final notices to warn corporations in default of filing annual returns for at least two years of its intention to dissolve. Corporations that receive such notices will have 120 days to file their annual returns, or will face administrative dissolution. Notices will be sent by mail to all valid addresses on file with Corporations Canada, including current directors’ addresses, as well as by email where corporations are subscribed to the annual return reminder notices. Annual returns may be filed online via the Online Filing Centre.

   
 

Read the May 2022 Charity & NFP Law Update