Feds’ corporate law reform may create more problems than it solves
The 2019 federal budget proposed a number of changes to the Canada Business Corporations Act. One in particular, which is expected to receive Royal Assent soon, would allow a corporation’s board of directors to consider the interests of certain prescribed stakeholders, the environment and the long-term interests of the corporation. While the intention may be to clarify and broaden the scope of directors’ duties to act in the best long-term interests of a corporation, the amendment’s muddled language may have the opposite effect. So instead of making it easier for a director to consider a company’s impact on the climate, it could make it harder.
Waitzer, Edward, "Feds’ corporate law reform may create more problems than it solves" (2019). Editorials and Commentaries. 194.