Imperfections

Franchise Law is a trap for the unwary lawyer. The consequences of getting it wrong can be significant, not only to the public, the client, and to various individuals related to the client, but also for the lawyer. According to LawPRO’s most recent statistics the average dollar value of a negligence claim against lawyers in franchise matters was approximately five times the claim value in almost every other area of law.

In May, the Ontario Securities Commission (OSC) announced a set of initiatives it is testing to support early-stage capital raising for Ontario businesses. The initiatives include an extension of Ontario Instrument 45-507 Self-Certified Investor Prospectus Exemption (Interim Class Order), which permits Ontario investors who may not meet the accredited investor financial criteria, but have qualifying education or work experience, to invest in private Ontario businesses.

Effective January 22, 2024, private corporations governed by the Canada Business Corporations Act are required to publicly disclose their individuals with “significant control” (“ISCs”); however, the ISC identification rules remain murky in their application to shareholders that are trusts. Government guidance is urgently required to ensure corporations and shareholders can properly meet these new obligations.

With the May 31 deadline for filing a report less than a month away, Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act ("S-211") is now a "front burner" item for many Canadian businesses.

A shareholders' Agreement is often overlooked by business owners. This shareholders' Agreement can assist the owners of the business entity to understand their rights, obligations, and expectations when it comes to their business dealings especially where there is conflict. It is important to assist clients to recognize why they require a shareholders' agreement where there is more than one shareholder in a business.

Your committee participation gives you a chance to play an important role in shaping and amplifying the impact of this dynamic practice area.

Questions we should be asking and considerations we need to keep in mind with respect to digital signing of documents for business lawyers.