Monday, March 26, 2012

A good reason to incorporate under the CBCA?

Under the Canada Business Corporations Act (see below) an appeal of a final order lies to the Court of Appeal; under the Ontario Business Corporations Act such an appeal lies to Divisional Court (see below).

There is no obvious reason for this distinction but there is a significant practical impact – Divisional Court is not a Court with significant commercial expertise and, indeed, in some parts of the Province Divisional Court is probably a very poor draw for complex appeals.

This may be a very good reason to incorporate under the CBCA:

CBCA

Appeal of final order

249. (1) An appeal lies to the court of appeal of a province from any final order made by a court of that province under this Act.

OBCA

Appeal

255. An appeal lies to the Divisional Court from any order made by the court under this Act. R.S.O. 1990, c. B.16, s. 255.

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