Thank you, Mr. Speaker. I am pleased to announce that Cabinet has approved the regulations to be made under the Business Corporations Act and that this act will be proclaimed in force on April 1, 1998. This act is one of the cornerstones of the commercial law reform program announced by my colleague, Mr. Kakfwi, when he was the Minister of Justice.
This act is a very significant step forward in the evolution of commercial law, adapting the present Companies Act to modern commercial practices and reducing overlap with other legislation. In the past 20 years, most of the provinces and the Yukon have adopted legislation based upon the Canada Business Corporations Act.
The Business Corporations Act strikes an appropriate balance between the interests of the majority and minority shareholders, creditors and the public dealing with companies. The act is also simplifies procedures, eliminates unnecessary applications to the court and eliminates areas of duplication with other legislation.
The new act:
-simplifies the procedure for incorporating a company;
- provides greater flexibility in a corporation's share structure and in the relations between shareholders;
-simplifies the procedure for major amendments to the corporation's internal structure by reducing the need for court approval of significant changes.
-expands minority shareholder rights by providing for specific rights for shareholders who are not in agreement with fundamental changes; and
-simplifies the procedures for dissolving and reviving companies
Mr. Speaker, the act was also drafted with the creation of the two new territories in mind. By providing that the transitional requirements under the new act must be completed by March 31, 1999, the Companies Act and Companies Winding-up Act will be repealed and no longer apply in either territory on April 1, 1999.
By establishing a greatly improved legal framework within which existing and future Northwest Territories and Nunavut companies may operate, this act will support the economic development which is so critical to both territories. Thank you, Mr. Speaker.
--Applause