Directors residency requirements removed in Alberta

As described in our July 30, 2020 alert, “Alberta to remove directors residency requirements”, the amendments to the Business Corporations Act (Alberta) (the ABCA) and the Companies Act (Alberta) to remove Canadian residency requirements for directors of corporations governed under those statutes have been proclaimed into force, effective March 29, 2021.

The removal of the Canadian residency requirements provides more flexibility to foreign clients who often chose to incorporate Canadian subsidiaries in other provinces that do not have Canadian residency requirements, such as British Columbia, Quebec, New Brunswick, Nova Scotia and Prince Edward Island. The amendments are intended to promote economic growth in Alberta and were characterized by the Government of Alberta as clearing the way for businesses to operate more freely and efficiently in Alberta as the province reopens the economy in the wake of the COVID-19 pandemic.

The amendments to the ABCA also include a new requirement for Alberta corporations to appoint an ‘agent for service’ that must be a resident of Alberta. Existing corporations have until March 29, 2022 to comply with this new requirement.

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