The Forfeited Corporate Property Act (FCPA), which came into force on December 10, 2016, requires corporations incorporated under the OBCA to maintain a register of their ownership interests in land. Corporations are required to identify each property in which they have an ownership interest, and show the date on which the corporation acquired and/or disposed of such property. Corporations are also required to keep with the register copies of deeds, transfers, and similar documents that contain:
- The municipal address(es) associated with each property;
- The relevant registry or land titles division and property identifier number for each property;
- The legal description of each property; and
- The assessment roll number(s) related to each property, if any.
As the FCPA requires that this information be kept at the corporation's registered address, records are typically maintained as part of a corporation's Minute Books. Although the language used in the FCPA is ambiguous, the Ministry of Infrastructure and the Ministry of the Attorney General have confirmed that the legislation is intended to apply to "fee simple and co-ownership interests only", and is not intended to capture leasehold or easement interests.
Corporations that were incorporated prior to December 10, 2016, must comply with these new obligations as of December 10, 2018. Corporations incorporated after December 10, 2016, were required to comply as of their date of incorporation. An individual's non-compliance with these record-keeping requirements, without reasonable cause, is punishable by a fine of up to CA$2,000 or imprisonment for up to one year, or both. Corporations are liable for a fine of up to CA$25,000 for non-compliance.
If you have questions regarding these requirements, or if you would like assistance ensuring your corporation complies, we would be pleased to speak with you. Dentons can assist with any of the following:
- Searches to determine whether your corporation owns property in Ontario;
- Review of Minute Books to ensure that real property records have been properly inserted;
- Searches to determine the address, land titles division, property identifier number and/or legal description of your property;
- Implementing ownership changes such as transfers between nominees and registration of name changes; and
- Maintenance of corporate records as you make changes to your ownership interests.
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