ARTICLE
27 December 2023

The Advantages Of The ABCA For Canadian Venture Capital, Private Equity And Startups

F
Fasken

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Fasken is a leading international law firm with more than 700 lawyers and 10 offices on four continents. Clients rely on us for practical, innovative and cost-effective legal services. We solve the most complex business and litigation challenges, providing exceptional value and putting clients at the centre of all we do. For additional information, please visit the Firm’s website at fasken.com.
Venture capital (VC) and private equity (PE) investors are highly selective regarding the portfolio companies they invest in.
Canada Corporate/Commercial Law
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Venture capital (VC) and private equity (PE) investors are highly selective regarding the portfolio companies they invest in.

No less diligence should be applied to choosing among the different corporate statutes available to regulate portfolio company governance.

On this front the Alberta Business Corporations Act (ABCA) offers several advantages specifically aimed at the governance preferences of, and governance risks faced by, VC and PE investors.

Moreover, given the mobility offered by Canadian corporate law, these advantages are available regardless of where in Canada the portfolio company is located or operates, whether Toronto or Vancouver, or Halifax or Calgary.

For Canadian VC and PE investors, this provides a valuable risk mitigation tool.

For Canadian startups and founders, this provides a valuable fundraising strategy.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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