Easing the way for companies
Recent changes to the Companies Act make it easier and quicker for businesses to incorporate, amalgamate or convert to an unlimited company.
The process for corporate structure and governance has been streamlined by allowing companies to submit changes to the Registrar of Joint Stock Companies, rather than requiring them to go before a judge.
Companies wishing to make fundamental changes - to the company's name, to its share structure or by merging with another company - can now do so with one shareholder meeting. The special resolution still has to be supported by three-quarters of shareholders (two-thirds if the company was incorporated after June 1, 2008). The second "confirmatory" meeting is no longer required.
These changes to modernize internal corporate transactions will save a signifi cant amount of paperwork. They also maintain Nova Scotia's competitive advantage in attracting companies that wish to continue using unlimited liability status. Involvement by the Nova Scotia Barristers' Society was vital to this work. In fact, the Society provides ongoing input on issues and legislation through a joint committee.
