Nov 22, 2021
Proposed amendments to Alberta’s Business Corporations Act tabled in the legislature in November could allow directors of private companies to invest in other companies and engage in projects in related industries. If passed, these “corporate opportunity waivers” would let private corporations set their own policies regarding the practice, an approach some jurisdictions in the United States have adopted to try to increase private equity and venture capital investment. Alberta would be the first province in Canada to do so. Under the current rules, venture capital or private equity investors on the board of one company cannot invest in or serve on other boards without permission of the original company.
The proposal comes in Bill 84 as part of an attempt to modernize corporate legislation and reduce barriers to business investment in Alberta, after a year of consultations with business leaders, academics, and accounting and legal professionals.
The Calgary Herald spoke to Kelsey Armstrong, a partner in Osler’s Corporate practice, who said the legal group was mostly supportive of the government’s ideas for various corporate governance amendments.
“In general among lawyers, I think we’re happy to see red tape removed and whatever the government can put in place to make things simpler for a lot of clients who are looking to set up business in Alberta,” she said. “So, I think lawyers are generally aligned with the government initiative here.”
Read the full article, “Alberta looks to cut red tape for growth capital with proposed 'corporate opportunity waivers'”, on the Calgary Herald website.