Corporations linked to terrorism can now be dissolved immediately without prior notice

Plain-language summary · AI-assisted

The Canada Business Corporations Act now adds a fifth ground for the Director to dissolve a federal corporation: being notified by the Minister of Public Safety that the corporation is a "listed entity" under the Criminal Code's terrorism-financing provisions. Unlike the existing dissolution grounds — such as failing to carry on business or missing filing obligations — this new ground bypasses the normal 120-day notice and public publication requirements entirely. The Director can issue a certificate of dissolution immediately upon receiving that ministerial notification. Companies and their directors should be aware that there is no advance warning built into this process; the corporation ceases to exist on the date shown in the dissolution certificate. This change does not affect the standard dissolution rules that continue to apply to all other grounds.

Who this affects
federal corporations listed as terrorist entities under the Criminal Code · corporate directors and officers · legal and compliance counsel for federally incorporated businesses · shareholders of affected corporations