I think the Government requires 25% of directors to be resident Canadians because, like most of the other students have mentioned, “this keeps Canadian businesses, Canadian.” I think this requirement is set in place to help Canadians, giving us a chance to start our own businesses here and providing opportunities to become directors/shareholders of corporations. I think this is very similar to the requirements stated for non-resident Canadians to work in our country. For example, if anyone from anywhere can come to Canada; work and start their companies, this is taking away jobs and opportunities from Canadian residents.
Parliament of Canada states two very important reason as to why 25% of directors are to be resident Canadians. “Enacted in 1975, the directors’ residency provisions were designed to address concerns about the amount of direct foreign investment in Canada. These concerns had been brought forward in a number of studies of foreign investment in Canada, which, among other things, had discussed the need to ensure a Canadian presence on corporate boards.” (Report of the Royal Commission on Canada’s Economic Prospects (1957); Report of the Task Force on the Structure of Canadian Industry (1968); Foreign Direct Investment in
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It has been suggested that the residency requirements help to promote compliance with the law, particularly statutes that impose liability on directors for the actions of a corporation. Furthermore, if directors must be resident in Canada, there are likely to be local assets from which judgments can be satisfied.” ((n.d.). Retrieved April 14, 2017, from
Government who lost all judgment up until then. The Supreme court deemed it was unconstitutional to ignore the needs of certain individuals. As a result, in B.C. the province must pay for interpreters that are mandatory for people with communication disabilities. The Supreme Court made an astute decision to support equality rights by valuing it over taxpayers’ money, and to confirm everyone in Canada is having a fair and equitable life. As important as the Charter of Rights and Freedoms is, the protection of new and resident canadians are also important. Canada protects it with Canada’s immigration and refugee
According to the pro and contra Section 203D and 203E of the Corporations Act as above, most judges and scholars agree that the procedure of removal directors as stipulated in the Corporations Act provides fairness treatment for the directors who may be removed. However, they still strongly argue whether the Section 203D is mandatory or not. Moreover, they questioned the existence of Section 203E since it eliminates flexibility for companies to make decision particularly in the emergency situation as explained above. Therefore, in order to provide broader perspectives about the relevancy of Section 203D and Section 203E, it is necessary to compare the procedure of removal directors in the Australian legislation with the
What impact will the prospect of deprivatization have on investment by managers of privatized firms?
Laying the golden egg: the coalition government's role in postwar Northern development, by John R Wedley, BC studies, number 88, Winter 1990 – 91
The solution is to conduct business in Canada to increase income, gain international experience, and obtain international relationships. This will be an opportunity for our company to increase profits and open into a new era of growth. Our company can and will be profitable if the most effective area is chosen.
In relation to James Hardie case, directors breached their statutory obligations, referred in the Corporations Act 2001 (Cth) s180, in terms of acting with care and diligence, good faith and the proper use of information and position.
“The business judgment rule, as a standard of judicial review, is the common law recognition of the statutory authority that has been vested in the board of directors (Shu-Acquaye, 2004).” “Under the rule, which operates as a standard of judicial review, the burden is placed on the party challenging a decision of the directors to establish facts rebutting that presumption (Skinner, 2006).” “Courts invoke the business judgment rule in assessing the conduct of directors and determining whether to impose liability in a particular case (Shu-Acquaye, 2004).” This rule does not provide unlimited protection for directors though. “Although, the business judgment rule is designed to foster the complete exercise of managerial power granted to directors, it is not an unfettered power (Shu-Acquaye, 2004).” “Consequently, the business judgment rule does not afford protection to directors who exercised "unintelligent" or "unadvised judgment," or who submitted to "faithlessness, fraud, or self-dealing (Shu-Acquaye, 2004)."” “Application of the business judgment rule is based on a demonstration that informed directors did in fact make a business judgment sanctioning the matter being examined. A director's obligation to inform himself, in preparation for his decision, derives from the fiduciary capacity in which he serves the company and its stakeholders (Shu-Acquaye, 2004).” “So long as the directors’ decision was reasonably informed and can be attributed to any rational business purpose, a court will not substitute its own notions of sound business judgment for that of the directors, unless that presumption is rebutted (Skinner, 2006).” Prior to the court’s decision in Smith v. Van Gorkom, the court was reluctant to hold boards liable for breach of
According to Glasbeek (2002), “Section 15 of the Canada Business Corporations Act unequivocally states, “A corporation has the capacity and … the rights, powers and privileges of a natural person. ””(p. 9). Although a corporation is not a natural person,
under above discussed dimensions the structure, setup and its processes help and favours lot more in doing business in Canada relatively than many other countries in the world
This is in part due to the fact that the Canadian economy fails to support the development of domestic giants because of the reasons discussed above. As a result, value-added activities, for example R&D, are not performed in Canada. The branch plant operations simply carry out non-strategic and non-value-added operations that do not give the county any competitive advantages or innovative drives. Furthermore, re-investment is limited in the Canadian operations because the majority of the resources are allocated to build the companies? competitiveness, which is often done elsewhere.
Exploring which countries might be a good match for an US based firm who is looking to enter a foreign market, can be a very complex process. Financial resources, competitive products or services, sales and distribution channels as well employee skill levels and talent are all factors which should weigh heavily into choosing the right country for any particular businesses expansion. For purposes of this paper, I will focus on Canada as a target for potential international expansion, examining several pertinent factors which I believe to be critical to a successful expansion project.
Doing business in Canada is often synonymous with North American business practices. In most cases there is little difference in managerial style, business language and approach to agreements whether you’re standing in Calgary, Alberta or Chicago, Illinois. There is an exception to this general principle however. Doing business in indigenous communities and with indigenous peoples in Canada is almost unrecognizable from models used across North America. Indigenous culture is different, the values are different, and the measure of time is different. This paper will briefly highlight some of the intricacies of managing business relationships in Canada’s indigenous communities.
I think that Canadian business and government do engage together to help promote a shared vision and agenda in the global business environment. Canada is an energetic federation. The government of Canada can’t act alone to determine a resolved in the matter. The Prime Minister himself must follow the key activity. He has the leadership and he cares about what he brings to the people and to bring the chief and aboriginal leaders and environmental together that emerge with a typical position that stands and speak to Canada’s future with hopefulness and trust. Here are three key points that the government engages in the global business environment:
Provision B.1.1 states “The Board should state its reasons if it determines that a director is independent notwithstanding the existence of relationships or circumstances which may appear relevant to its determination, including if the director: has received or receives additional remuneration from the company apart from
Definition: An investment made by a company or entity based in one country, into a company or entity based in another country.